The liabilities to equity ratio or LE is one of the solvency ratios which investors use to figure out how much of their equity will be spent on paying for all the liabilities some time in the future. For example, LE ratio at 50% means that for every dollar you invest in the company, 50% of it will be spent on paying back the liabilities in the future. Very conservative investors prefer using this ratio instead of the debt to equity ratio (DE), as the DE ratio only takes the interest bearing liabilities into consideration.
The formula for determining the Liabilities To Equity Ratio is defined as:
\(LE\): Liabilities To Equity Ratio
\(Total\text{ }Liabilities\): The total liabilities the company has currently.
\(Equity\): 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: \(\%\)
Liabilities To Equity Ratio
Use the calculator to find the percentage of the equity the company is going to spend on repaying its liabilities.
The total liabilities the company has currently.
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.
