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The Debt to Equity (D/E) Ratio Calculator helps you make informed decisions by calculating debt to equity (d/e) ratio-related values. Calculate the Debt to Equity (D/E) Ratio to measure a company's financial leverage.
Step-by-Step Instructions
Enter your revenue, costs, and business metrics in the input fields.
Review the calculated results displayed in real-time.
Compare different scenarios using the comparison view.
Apply the insights to your financial decisions.
When you need to assess a company's financial leverage and risk by comparing its total liabilities to its shareholder equity.
- •Investors
- •Financial Analysts
- •Business Owners
- •Creditors
Scenario
An investor is comparing two companies. Company A has $500,000 in liabilities and $1,000,000 in equity. Company B has $1,200,000 in liabilities and $600,000 in equity.
Outcome
The calculator shows Company A has a D/E ratio of 0.5, while Company B has a D/E ratio of 2.0. This indicates that Company B is more reliant on debt to finance its assets, which could mean higher risk.
Still have questions? Check our financial glossary for definitions or explore our learning resources.
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