Tag Archives: financial leverage

Debt to Equity Ratio Formula: How to Calculate and Read It

Mini-MBA

Debt-to-equity ratio = total debt ÷ shareholders' equity. The result is a multiple, so 1.5 means one and a half euro of debt for every euro of equity. A business owner preparing a loan application may have the balance sheet open and a calculator ready, yet still be unsure which liabilities to count. The bank […]