The Debt-to-Equity Ratio measures a company’s financial leverage by comparing total debt to equity. It shows how much debt a company uses relative to the equity provided by shareholders.Total Debt: Includes both short-term borrowings and long-term debt (from the balance sheet). Total Equity: Shareholders’ ownership in the company. Can be measured at book value (balance sheet equity) or market value of equity (market capitalization), depending on the purpose.
Learn Debt-to-Equity Ratio with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Debt-to-Equity Ratio through hands-on practice and real-world examples.