The debt to equity ratio or DE is one of the solvency ratios which investors use to figure out how much of their equity is being used to finance a company's assets. As a rule of thumb, it is preferable to have this ratio as long as possible, since interests payment will have negative impact on a company's liquidity.
DE ratio at 15% indicates that for every $1 of equity the shareholders own, the company will owe 15% of it on interest-bearing debt.
The formula for determining the Debt To Equity Ratio is defined as:
\(DE\): Debt To Equity Ratio
\(Debt\): How much interest-bearing debt does the company currently have?
\(Equity\): The amount of money the company has from its initial investment or the total value of investor's stake in the company.
The debt to equity ratio is measured in: \(\%\)
Debt To Equity Ratio
Use the calculator to find out how much of the equity a company is spending on financing its assets.
How much interest-bearing debt does the company currently have?
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
The amount of money the company has from its initial investment or the total value of investor's stake in the company.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
