# How To Calculate Debt To Equity Ratio

Posted on September 11, 2018 at 06:59 AM

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##### Debt/Equity Ratio Definition | Investopedia
Debt/Equity (D/E) Ratio, calculated by dividing a company’s total liabilities by its stockholders' equity, is a debt ratio used to measure a company's financial leverage.
##### Debt-to-equity ratio calculator | BDC.ca
This ratio measures how much debt your business is carrying as compared to the amount invested by its owners. It indicates the amount of liabilities the business has for every dollar of shareholders' equity.
##### What Is the Debt-To-Equity Ratio, and How Is It Calculated?
Debt on a company’s balance sheet represents certain financial obligations it has taken on to support its business. Calculating a company’s debt-to-equity ratio helps company management, lenders, and creditors understand the riskiness of the company's financial structure.