Debt to Equity Ratio Calclulator (D/E)



Debt to equity ratio is also called Risk ratio. It is measure of company’s ability to repay its obligations.

Optimal D/E is to be 1.  For most firm’s maximum D/E is between  1.5 and 2.

Formula:

D/E = Debt (liabilities)/Equity

Total liabilities (A):
Shareholders equity (B):

Shareholders equity (B) must be diferent from 0 !
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