Debt-to-Equity Ratio Calculator

Your details

Enter one total, or break liabilities into current (short-term) and long-term debt.
All debt the company owes: short-term and long-term liabilities combined.
Only used for the long-term D/E variant. The portion of liabilities that is long-term borrowing.
Know equity already, or work it out as total assets minus total liabilities.
Total assets minus total liabilities, the owners stake in the company.
Picks a typical sector benchmark to compare your ratio against. Sector norms vary widely.
Currency
Debt-to-equity ratioElevated leverage
1.2
Long-term D/E ratio0.8
Gearing ratio (debt of total capital)54.5%
Debt share of capital54.5%
Equity share of capital45.5%
Shareholder equity used$500,000
Selected industry benchmark1

The company carries 1.2 of debt for every 1 of equity.

  • Creditors fund 54.5% of the capital structure and owners fund 45.5%.
  • That is above the 1 typical for the general benchmark, so it carries more debt than a peer would.
  • Stripping out short-term items, the long-term D/E is 0.8, a stricter view of financing leverage.
  • A ratio above 1 means debt outweighs equity, which can amplify both returns and risk if earnings dip.

Next stepCompare this ratio against direct competitors and the same company prior years before judging it good or bad.

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