Debt-to-Equity Ratio
D/E = Total Debt / Total Equity. Leverage relative to ownership.
Result
D/E ratio
0.667
Moderate
- Total debt$400
- Total equity$600
- D/E0.6667
- Debt %40.0%
- Equity %60.0%
- TierModerate
Step-by-step
- D/E = 400 / 600 = 0.667.
- Capital structure: 40.0% debt / 60.0% equity.
How to use this calculator
- Total debt = short + long-term borrowing.
- Total equity from balance sheet.
About this calculator
D/E ratio: leverage indicator. Low D/E (<0.5) = conservative funding, financial flexibility. High D/E (>2) = aggressive leverage, magnifies returns and risk. Industry varies: utilities + REITs run 1-2 normally (stable cash flows support debt); tech often <0.3 (no need); banks run 6-10+ (different model). Rising D/E over time may indicate trouble; falling = deleveraging (often post-recession).
Frequently asked
Short-term debt + long-term debt + current portion long-term debt. Sometimes also includes lease obligations (operating leases per ASC 842).
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