Calculate your debt-to-equity ratio, debt ratio, and equity ratio. Understand your company's financial leverage and how it compares to industry standards.
Short-term + long-term debt
Debt-to-Equity Ratio
0.67x
Debt Ratio
40.0%
Equity Ratio
60.0%
Total Assets
$1,000,000.00
Moderate leverage — a balanced mix of debt and equity financing.
Capital Structure
Conservative
Low risk, strong equity base. May miss leverage benefits.
< 0.5x
Moderate
Balanced approach, typical for established companies.
0.5-1.0x
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Balanced
Moderate leverage, common in capital-intensive industries.
1.0-1.5x
Aggressive
High leverage, higher return potential but greater risk.
1.5-2.5x
Very High Risk
Excessive debt, vulnerable to downturns.
> 2.5x
The debt-to-equity ratio is one of the most important measures of a company's financial structure. It shows how a business is funded — through borrowed money (debt) versus owner investment (equity). Creditors and investors use this ratio to assess risk: companies with high leverage face greater financial risk but may also generate higher returns on equity. A balanced capital structure considers industry norms, growth stage, and interest rate environment.
The debt-to-equity (D/E) ratio measures how much debt a company uses to finance its operations relative to shareholder equity. It's calculated by dividing total liabilities by shareholder equity. A higher ratio means more leverage and potentially higher risk.
It depends on the industry. Capital-intensive industries like utilities or manufacturing often have higher D/E ratios (1.5-2.0+), while tech companies may be below 0.5. Generally, a ratio under 1.0 is considered conservative.
The debt ratio divides total liabilities by total assets and shows what percentage of assets are financed by debt. The D/E ratio divides liabilities by equity, showing the proportion of debt to ownership stake. Both measure leverage but from different perspectives.
Higher leverage amplifies both gains and losses. While debt can boost returns through tax-deductible interest and financial leverage, excessive debt increases the risk of default, especially during economic downturns.
Debt Service Coverage Ratio Calculator
Calculate your DSCR to see if your business generates enough income to cover its debt payments. Essential for loan applications and financial health monitoring.
Quick Ratio Calculator
Calculate your business quick ratio (acid test) to assess short-term liquidity. See if your liquid assets can cover current liabilities without relying on inventory sales.