Debt-to-Equity Calculator
Measure a company's financial leverage and risk level
Uses & Examples
When to Use This Tool
- Checking how much debt a company carries before buying the stock
- Comparing leverage across competitors in the same industry
- Screening out over-leveraged companies during rising interest rate environments
- Assessing bankruptcy risk — high D/E + declining revenue = red flag
Worked Example
Worked Example
Total Debt: $500,000 | Total Equity: $800,000
D/E = $500,000 / $800,000 = 0.63x
Balanced — company uses moderate leverage, typical for a stable business