
Debt to Equity (D/E) Ratio Calculator
Debt to equity ratio measures the riskiness of a company's financial structure. It indicates the relative proportion of shareholders' equity and debt used to finance a company's assets. Try now…
How to calculate?
Formula: Debt to Equity Ratio = Total Liabilities/Total Equity
This is a balance sheet component; the values are commonly stated against Total Liabilities and Total Equity.
Total Liabilities:
Total Liabilities is the source of the funds such as short term and longterm external borrowing that is mainly used to fund its asset purchase.
Total Equity:
Total equity is the amount invested by shareholders of the company.
Example:
Debt to equity (D/E) ratio for a company with a total liability of $360,000 and total equity of $720,000 is 0.5:1. It means that, the company has an exposure of 50% in the form of total liabilities to total equity. In other words, the assets of the company are funded 2to1 by investors to creditors. 
Debt Ratio Calculator
Debt ratio are used to compare debt (total liabilities) to its total assets. It shows proportion of a company's assets that financed by debt. Try now…
How to calculate?
Formula: Debt Ratio = Total Liabilities/Total Assets
This is a balance sheet component; the values are commonly stated against Total Liabilities and Total Assets.
Total Liabilities:
Total Liabilities is the source of the funds such as short term and longterm external borrowing that is mainly used to fund its asset purchase.
Total Assets:
Total assets are the sum of all current and noncurrent assets that a company owns.
Example:
Debt ratio for a company with a total liability of $30,000 and total assets of $100,000 is 0.36:1. It means that, 36% of its assets are financed by debt. 
Interest Coverage Calculator
Interest Coverage Ratio are used to determine the ability of a company to pay the interest on its outstanding debt. Try now…
How to calculate?
Formula: Interest Coverage Ratio = Earnings Before Interest and Tax (EBIT)/Interest Expense
This is an income statement component; the values are commonly stated against EBIT and Interest Expense.
Earnings Before Interest & Tax (EBIT):
Profit before deducting all its interest & taxes.
Interest Expense:
Interest expense is the cost of debt  the amount paid for servicing the amount borrowed by the company.
Example:
Interest coverage ratio for a company with a net income of $100,000 and interest expense of $25,000 is 4 times. It can meet its interest payments 4 times of its earnings. Interest coverage ratio lower than 1.5 times means a company is vulnerable and may face difficulties to meet its interest payments.
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Financial Leverage Ratios
A company capital structure can be a mix of common equity, preferred equity, long term debt and shortterm debt. Debt to equity (D/E) ratio and Interest coverage ratio are most commonly used to assess the risk associated in the business. Some of the most commonly used financial leverage ratios  debt to equity (D/E) ratio, debt ratio and interest coverage ratio. Select a ratio calculator and key in the required values to get the desired result: