Calculate the debt-to-equity (D/E) ratio to measure a company's financial leverage. This ratio indicates how much debt is used relative to shareholders' equity and is essential for evaluating corporate risk and solvency.
Sum of all short-term and long-term debt
Total equity attributable to shareholders
Divides total liabilities by shareholders' equity to show the proportion of debt financing versus equity financing. A ratio above 2.0 is generally considered high.
Compute your DTI ratio to assess loan eligibility and financial health.
Evaluate short-term liquidity with the current ratio.
Measure immediate liquidity using the quick (acid-test) ratio.
Evaluate stock valuation using the Price-to-Earnings ratio.
Measure profitability relative to shareholders' equity with ROE.
Assess asset efficiency with the Return on Assets ratio.
