Debt-to-Equity Ratio Calculator

How it is calculated

The debt-to-equity ratio compares what a company owes with what its owners have invested: D/E = Total liabilities / Shareholders' equity. Both figures come from the balance sheet on the same date and in the same currency. The tool shows the ratio, the same ratio as a percentage (D/E × 100) and a display form such as 1.50 : 1. Equity must be above zero; a company with zero or negative equity gives no result, because the ratio would be meaningless. Liabilities cannot be negative. What counts as a healthy ratio varies strongly by industry, so compare with similar firms.

Common mistakes

• Using only borrowed money (loans and bonds) as liabilities while another source defines it as total liabilities. Check which definition you are comparing with.
• Entering total assets instead of equity.
• Mixing balance sheet dates, such as liabilities from year-end and equity from mid-year.
• Comparing a bank or a utility with a software company. Typical levels differ greatly between industries.
• Entering a negative equity figure and expecting a ratio; the tool gives no result when equity is not positive.