Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Accounting, Taxation, and Reporting
  • Managerial & Financial Accounting & Reporting

Debt to Equity Ratio - Explained

What is the Debt to Equity Ratio?

Written by Jason Gordon

Updated at April 7th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is a Debt to Equity Ratio?

What is a Debt to Equity Ratio?

The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity. 

This metric demonstrates the extent to which the company funds its operations with debt financing versus equity investment or retained earnings. 

Back to: Accounting & Taxation

Related Topics

  • Trend Analysis of Financial Statements
  • Common-Size Analysis (Vertical Analysis) of Financial Statements
  • Common-Size Financial Statement
  • Net Dollar Retention
  • Horizontal Analysis
  • Per Share Basis
  • Profitability Ratios
  • Gross Margin Ratio
  • Profit Margin
  • After Tax Profit Margin
  • Return on Assets
  • Total Shareholder Return
  • Cash on Cash Return
  • Earnings Per Share
  • Diluted Earnings Per Share
  • Asset Turnover Ratio
  • Berry Ratio
  • Break-Even Analysis
  • Liquidity Ratio
  • Current ratio  (Working Capital Ratio)
  • Working Ratio
  • Quick Ratio
  • Quick Assets
  • Days Sales Outstanding
  • Cash Ratio (Operating Cash Flow Ratio)
  • Receivables turnover ratio (often converted to average collection period)
  • Accounts Payable Turnover Ratio
  • Inventory turnover ratio (often converted to average sale period)
  • Solvency (Coverage Ratios)
  • Leverage Ratio (Debt Ratio)
  • Asset Coverage Ratio
  • Debt to Equity
  • Debt to Income Ratio
  • Debt Coverage Ratio
  • Times Interest Earned
  • Market Capitalization
  • Price to Equity Ratio
  • Book-To-Market Ratio
  • Price to Earnings Ratio
  • Price to Earnings Growth (PEG) Ratio
  • Price to Earnings Growth Payback Ratio
  • CAPE Ratio
  • Price to Cash Flow Ratio
  • Capital Maintenance
  • Book to Bill Ratio
  • Asset Turnover Ratio
  • Plowback Ratio 
  • Days Inventory Outstanding
  • Days Payable Outstanding
  • Days Sales Outstanding
  • Non-financial Performance Measures: The Balance Scorecard
debt to equity ratio d/e debt to equity

Was this article helpful?

Yes
No

Related Articles

  • Law & Risk
  • Career Development
  • Key Management Accounting Personnel - Explained



©2011-2021. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand