Debt Equity Ratio Template

Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. Start Free

Debt-Equity Ratio Template

This debt-equity ratio template shows you how to calculate D/E ratio given the amounts of short-term and long-term debt and shareholder’s equity.

This is what the debt-equity ratio template looks like:

Debt Equity Ratio Template Screenshot

Download the Free Template

Enter your name and email in the form below and download the free template now!

The Debt-to-Equity ratio (also called the “debt-equity ratio”, “risk ratio” or “gearing”), is a leverage ratio that calculates the weight of total debt and financial liabilities against the total shareholder’s equity. Unlike the debt-assets ratio, which uses total assets as a denominator, the debt-to-equity ratio uses total equity. This ratio highlights how a company’s capital structure is tilted either toward debt or equity financing.

Debt-to-Equity ratio formula

Short formula:

Debt-to-Equity Ratio = Total Debt / Shareholders’ Equity

Long formula:

Debt-to-Equity Ratio = (short-term debt + long-term debt + fixed payment obligations) / Shareholders’ Equity

A high debt-equity ratio can be good when a firm can easily service its debt obligations (through cash flow) and is using the leverage to increase equity returns.

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.

Analyst Certification FMVA® Program

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.


Financial Analyst certification curriculum


A well rounded financial analyst possesses all of the above skills!


Additional Questions & Answers

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answers for you to discover:


0 search results for ‘