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Leverage Ratios Calculator

Compute debt-to-equity, debt-to-assets, and debt-to-capital from one balance-sheet snapshot.

 

 

 

D/E
D/A
D/capital

About this calculator

Use this leverage calculator to compare a firm’s capital structure with peers. Pick one debt definition (gross vs net, interest-bearing only, etc.) and stick to it. Interest coverage is a different page.

D/E = debt ÷ equity. D/A = debt ÷ assets. D/capital = debt ÷ (debt + equity). All three are unitless ratios. D/A and D/capital can differ if assets are not equal to debt plus equity (other liabilities or rounding).

Debt: The debt figure you care about, often interest-bearing. Same currency as equity and assets.

Equity: Book or market equity; stay consistent with how you use the ratio.

Assets: Total assets at the same snapshot as debt and equity.

D/E: Debt divided by equity.

D/A: Debt divided by total assets.

D/capital: Debt divided by debt plus equity.