{
  "id": "debt-to-equity",
  "version": "bb1979fc9bd6",
  "status": "published",
  "name": "Debt to Equity Calculator",
  "question": "What is my debt to equity ratio?",
  "summary": "Computes the debt-to-equity ratio, total liabilities ÷ stockholders’ equity, with total assets and the debt-to-assets ratio.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/debt-to-equity-calculator",
  "markdown": "https://www.acalculator.org/finance/debt-to-equity-calculator.md",
  "kind": "function",
  "method": "Debt-to-equity = total liabilities ÷ stockholders’ equity. Total assets = total liabilities + stockholders’ equity. Debt-to-assets = total liabilities ÷ total assets × 100.",
  "assumptions": [
    "Debt means total liabilities, current and long-term, as in the SEC and OpenStax formulas.",
    "Stockholders’ equity must be more than $0.",
    "Arithmetic is exact on the typed decimals; the ratios show to 2 decimals, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "tl": {
        "title": "Total liabilities",
        "description": "Everything the company owes: current liabilities plus long-term liabilities.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "te": {
        "title": "Stockholders’ equity",
        "description": "Total stockholders’ (or owners’) equity on the balance sheet.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "de": {
      "label": "Debt-to-equity ratio",
      "description": "Total liabilities ÷ stockholders’ equity.",
      "format": "number"
    },
    "da": {
      "label": "Debt-to-assets ratio",
      "description": "Total liabilities ÷ total assets × 100.",
      "format": "percent"
    },
    "assets": {
      "label": "Total assets",
      "description": "Total liabilities + stockholders’ equity.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "tl": 150000,
      "te": 100000
    },
    "outputs": {
      "de": 1.5,
      "da": 60,
      "assets": 250000
    },
    "text": "Liabilities of $150,000.00 against equity of $100,000.00 give a debt-to-equity ratio of 1.5."
  },
  "examples": [
    {
      "given": {
        "tl": 150000,
        "te": 100000
      },
      "expect": {
        "de": 1.5,
        "da": 60,
        "assets": 250000
      },
      "source": "OpenStax, Principles of Finance, 6.4 Solvency Ratios (debt-to-equity = total liabilities ÷ total stockholder equity; debt-to-assets = total liabilities ÷ total assets; Clear Lake Sporting Goods and the debt covenant exercise). https://openstax.org/books/principles-finance/pages/6-4-solvency-ratios: 150,000 ÷ 100,000 = 1.5; 150,000 ÷ 250,000 = 0.6 (60%); U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements (debt-to-equity ratio = total liabilities ÷ shareholders’ equity; assets = liabilities + shareholders’ equity). https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements"
    },
    {
      "given": {
        "tl": 600000,
        "te": 1800000
      },
      "expect": {
        "de": 0.3333333333333333,
        "da": 25,
        "assets": 2400000
      },
      "source": "OpenStax, Principles of Finance, 6.4 Solvency Ratios (debt-to-equity = total liabilities ÷ total stockholder equity; debt-to-assets = total liabilities ÷ total assets; Clear Lake Sporting Goods and the debt covenant exercise). https://openstax.org/books/principles-finance/pages/6-4-solvency-ratios: 600,000 ÷ 1,800,000 = 0.33; exact 1/3 (Python Fraction); 600,000 ÷ 2,400,000 = 25%"
    },
    {
      "given": {
        "tl": 1000000,
        "te": 1800000
      },
      "expect": {
        "de": 0.5555555555555556
      },
      "source": "OpenStax, Principles of Finance, 6.4 Solvency Ratios (debt-to-equity = total liabilities ÷ total stockholder equity; debt-to-assets = total liabilities ÷ total assets; Clear Lake Sporting Goods and the debt covenant exercise). https://openstax.org/books/principles-finance/pages/6-4-solvency-ratios: 1,000,000 ÷ 1,800,000 = 0.55 (printed); exact 5/9 = 0.5556 (Python Fraction)"
    }
  ],
  "sources": [
    "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements: debt-to-equity ratio = total liabilities ÷ shareholders' equity, and assets = liabilities + shareholders' equity. https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements (retrieved 2026-10-18)",
    "OpenStax, Principles of Finance, 6.4 Solvency Ratios: debt-to-equity = total liabilities ÷ total stockholder equity, debt-to-assets = total liabilities ÷ total assets, Clear Lake Sporting Goods (1.5 and 0.6), and the debt covenant exercise (0.33 and 0.55). https://openstax.org/books/principles-finance/pages/6-4-solvency-ratios (retrieved 2026-10-18)"
  ],
  "related": [
    "current-ratio",
    "roe",
    "working-capital",
    "debt-to-income-ratio"
  ],
  "changelog": []
}