MihsabaHow to use
Calculate total debt relative to shareholders’ equity as a multiple and percentage.
- Enter Total debt.
- Enter Shareholders’ equity.
- Calculate, then review the metric definition and comparison limits.
How it is calculated
Example
Debt of 300,000 and equity of 200,000 give D/E of 1.5, or 150%.
Important notes
Debt may mean interest-bearing debt only or a broader obligation set. Keep the definition consistent when comparing companies or periods.
Worked examples and interpreting results
Debt of 300,000 and equity of 200,000 give D/E of 1.5, or 150%.
| Case | Calculation | Result |
|---|---|---|
| Multiple | 300000 ÷ 200000 | 1.5 |
| Percentage | 1.5 × 100 | 150 % |
How to check the result
Debt may mean interest-bearing debt only or a broader obligation set. Keep the definition consistent when comparing companies or periods.
Frequently asked questions
Do operating liabilities count as debt?
It depends on the definition. Many D/E analyses use interest-bearing debt, so avoid mixing definitions.
Should the inputs use the same period?
Yes. Use figures from the same reporting period and accounting definition so balances and flows remain comparable.
Is the result enough for a decision?
No. The metric summarizes a numerical relationship; compare it with company history, industry context, and accounting or operating policies.