Debt to Equity Ratio

vCalc Reviewed

`DER = D / E `

`(D)"Total long-term Debt"`

`(E)"Total Equity"`

The Math / Science

The Debt to Equity Ratio measures how a company is leveraging its debt against the resources of its owners.

A result greater than 1 means that creditors have more stake than owners.

Therefore, by using this calculator a company may be possible to calculate with easy on how to solve the issue of debts and therefore make better decision before the station gets worse.

The Accounting Ratio Calculator provides numerous standard equations used in business accounting, including the following:

Best Possible Days Sales Outstanding - gives useful insight into delinquencies, as it considers only Current Receivables.
Current Ratio - A liquidity ratio that measures the ability to pay short-term liabilities.
Days Sales Outstanding - tests the efficiency of the conversion of receivables into cash.
Debt to Equity Ratio - measures how a company is leveraging its debt against the resources of its owners.
Inventory Turnover Ratio - reveals how many times inventory turns over in a period
Net Cash Flow from Operations - Net income - Increase in Receivables + Increase in Payables.
Quick Assets - cash and assets that can be converted quickly to cash
Quick Ratio (aka Acid Test) - measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash
Stockholder's Equity - sum of Common Stock at Par, Premium on Common Stock, Preferred Stock at Par, Premium on Preferred Stock and Retained Earnings

Financial Calculators

Also consider the following finance and accounting equations and calculators: