Debt to Equity Ratio Calculator (D/E)

Debt to equity ratio is also called Risk ratio. It is a 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.


D/E = Debt (liabilities)/Equity

Debt to equity ratio = Total liabilities / Stockholders’ equity

Debt to Equity Ratio = (Short term debt + Long term debt + Fixed payment obligations) / Shareholders’ Equity