Accounting MascotAccounting Q&A

What is the debt to equity ratio formula?
submitted by John

thumawd

Liabilities divided by shareholder's equity.

Here's a Debt to Equity Calculator.

whyUknow

The debt to equity ratio is calculated by dividing a company's total liabilities by its shareholders' equity. The formula is:
Debt to Equity Ratio = Total Liabilities / Shareholders' Equity

less_tense_04

The debt to equity ratio shows how much debt a company has compared to its owner's equity. You get it by dividing the total liabilities by the shareholders' equity, like this:
Debt to Equity Ratio = Total Liabilities / Shareholders' Equity

That's right. Total liabilities, not just the ones you like.

4whomTheBell

The debt to equity ratio shows you how much debt a company has compared to what the owners have invested. To get it, just divide the company's total debts by the owners' money.

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