How to calculate debt equity ratio from balance sheet example?
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Debt/Equity Ration = Total Liabilities/ Shareholders Equity
It can be expressed as a number of percent.
For Example:
Total Debt is 100000
Total Shareholders Equity is 25000
So Therefore Debt to Equity Ratio is = 100000/25000
= 4 or 400%
It can be expressed as a number of percent.
For Example:
Total Debt is 100000
Total Shareholders Equity is 25000
So Therefore Debt to Equity Ratio is = 100000/25000
= 4 or 400%
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