1. Finance
  2. Liquidity & Solvency

Debt-to-Equity Ratio


Compares a company's total debt to its total equity, giving insights into its financial leverage. A high ratio might indicate that the company is heavily financed by debt, which can be riskier.


Total Debt / Total Equity


If a company has a total debt of $1,000,000 and total equity of $2,000,000, its debt-to-equity ratio is 0.5:1.

Other KPIs in Liquidity & Solvency