How to calculate Debt-to-equity
The Debt-to-equity formula, with plain worked examples you can check yourself.
Debt-to-equity = D ÷ E
Worked examples
D = 600 · E = 300Debt-to-equity = 2
D = 250 · E = 500Debt-to-equity = 0.5
D = 800 · E = 400Debt-to-equity = 2
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Valuation & Deals.
Related terms
Practice Debt-to-equity with real numbers
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