Debt-to-equity ratio formula

Tags: corporate finance financial analysis metric

Description of the Debt-to-equity ratio formula

Formula for the calculation of a company's debt-to-equity ratio.

Formula

Debt-to-equity ratio = \frac{Debt}{Book value of shareholders' equity}

Additional information related to this formula

Related financial formulas

Cash flow interest coverage ratio • Fixed-charge coverage ratio • Interest coverage ratio • Total debt-to-assets ratio