Debt to equity ratio is one of the most used company financial leverage ratio which can be calculated by dividing its total liabilities (debt) by the shareholder's equity. This is a measure of how much suppliers (or) creditors have pledged to the company versus what the shareholders have pledged. This finance calculator will help you to calculate the debt-to-equity ratio (D/E) from the total liabilities and the share holders fund.
Debt to equity ratio is one of the most used company financial leverage ratio which can be calculated by dividing its total liabilities (debt) by the shareholder's equity. This is a measure of how much suppliers (or) creditors have pledged to the company versus what the shareholders have pledged. This finance calculator will help you to calculate the debt-to-equity ratio (D/E) from the total liabilities and the share holders fund.
Let us consider the total liabilities of the company is 15000 and Shareholder's Equity is 20000
Solution :
D/E = ( 15000 / 20000 ) * 100
= 0.75 * 100
= 75 %
Hence the D/E is 75 %.
Calculation of Debt to Equity Ratio is made easier here.