Debt-to-Equity Ratio

Debt-to-equity ratio, abbreviated as D/E, is how much debt a business has compared to its equity.

 

debt-to-equity ratio Formula

\(\large{ D/E = \frac{ D_t }{ E_t }  }\)

Where:

\(\large{ D/E }\) = debt-to-equity ratio

\(\large{ D_t }\) = total debts

\(\large{ E_t }\) = total equity