Debt-to-Equity Ratio (D/E) Calculator

Leverage & Debt
Updated Oct 2026 • Has calculator

Compares a company's total debt to its shareholders' equity.

Calculate D/E Ratio

D/E Ratio Formula

D/E Ratio = Total Debt ÷ Total Shareholders’ Equity

Total short-term and long-term debt (USD millions)

Total stockholders’ equity (USD millions)

D/E Ratio

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Not investment advice.

What is D/E Ratio?

The debt-to-equity ratio (D/E ratio) measures how much of a company's financing comes from creditors versus shareholders by dividing total debt by total stockholders' equity. A higher D/E ratio signals greater financial leverage, which amplifies both gains in good times and losses during downturns. Capital-intensive industries such as utilities, airlines, and real estate typically carry higher D/E ratios than asset-light technology or software businesses, so comparisons are most meaningful within the same sector.

Worked Example

Worked example — Ford Motor Company (F)

FY2025 (Dec 31, 2025)

Step 1  Total debt (due within one year + long-term, incl. Ford Credit): $163,336M
Step 2  Total equity attributable to Ford: $35,952M
Step 3  D/E = $163,336M ÷ $35,952M = 4.54
Step 4  → Ford carries $4.54 in debt for every $1 of equity, but $141,417M of it sits in Ford Credit, which funds customers’ car loans and leases. The car business alone: $21,919M ÷ $35,952M = 0.61

Source: Ford Motor Company — Form 10-K 2025 (SEC EDGAR) (2026-02-11)

How to Interpret D/E Ratio

< 0.5
Conservative — very low financial leverage
0.5 – 1
Moderate — manageable debt load
1 – 2
Elevated — significant leverage
> 2
High — heavy leverage; assess cash flows

📚 Leverage & Liquidity — Complete the path

  1. D/E Ratio
  2. Current Ratio
  3. Quick Ratio
  4. Cash Ratio
  5. Interest Coverage
Sources
  1. Ford Motor Company — Form 10-K 2025 (SEC EDGAR)
  2. CFA Institute — Financial Reporting and Analysis, 6th ed.
  3. Investopedia — Debt-to-Equity Ratio