Debt-to-Capital Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Debt-to-capital ratio, abbreviated as D/C, indicates how leveraged a company is by dividing its intrest-bearing debt with its total capital.

 

debt-to-capital ratio Formula

\(\large{ D/C = \frac{ D }{ D \;+\; SE }  }\)   

Where:

\(\large{ D/C }\) = debt-to-capital ratio

\(\large{ D }\) = debt

\(\large{ SE }\) = shareholders' equity

 

Tags: Equations for Manufacturing