Debt-to-Equity Ratio Calculator

About the Debt-to-Equity Ratio Calculator

The Debt-to-Equity Ratio Calculator computes the debt-to-equity ratio, a key leverage metric that compares a company’s total liabilities to its shareholders’ equity.

Debt-to-Equity Ratio: Calculated as \( D/E = \frac{TL}{SE} \), where \( TL \) is total liabilities and \( SE \) is shareholders’ equity.

Use this tool to assess financial leverage, evaluate capital structure, or support investment analysis.

• Features:
  • Calculates Debt-to-Equity Ratio: \( D/E = \frac{TL}{SE} \).
  • Inputs: Total Liabilities (\( TL \)), Shareholders’ Equity (\( SE \)).
  • Keypad includes digits (0–9), decimal point (.), and thousands separator (,).
  • Displays calculations in LaTeX format using MathJax.
  • Clear, backspace, and copy functionality for results.
  • Share or embed the calculator.
• Practical Applications: Useful for financial analysts, investors, or business owners evaluating a company’s financial risk and capital structure.
• How to Use:
  • Enter Total Liabilities (\( TL \), e.g., short-term and long-term debt).
  • Enter Shareholders’ Equity (\( SE \), e.g., common stock, retained earnings).
  • Use the keypad to input digits, decimals, or thousands separators.
  • Click "Calculate" to view the debt-to-equity ratio and financial note.
  • Use "Clear" to reset or "⌫" to delete the last character.
  • Copy results or share/embed the calculator.
• Helpful Tips:
  • Inputs must be non-negative numbers; shareholders’ equity cannot be zero.
  • Use commas for readability (e.g., 1,000,000); they are removed during calculation.
  • Verify inputs with balance sheet data for accuracy.
  • Results are rounded to two decimal places.
  • A ratio below 1 suggests low leverage; above 2 may indicate high financial risk.
• Examples:
  • Example 1:
    • Inputs: Total Liabilities = $200,000, Shareholders’ Equity = $300,000
    • Calculation: \( D/E = \frac{TL}{SE} = \frac{200000}{300000} = 0.666... \)
    • Result: Debt-to-Equity Ratio = 0.67, Financial Note: A ratio of 0.67 indicates low leverage, suggesting a stable capital structure.
  • Example 2:
    • Inputs: Total Liabilities = $500,000, Shareholders’ Equity = $200,000
    • Calculation: \( D/E = \frac{TL}{SE} = \frac{500000}{200000} = 2.5 \)
    • Result: Debt-to-Equity Ratio = 2.50, Financial Note: A ratio of 2.5 suggests high leverage, indicating potential financial risk.

Assess your company’s financial leverage with this interactive Debt-to-Equity Ratio Calculator. Share or embed it on your site!