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