Question

How to find debt ratio with liabilities and equity

Answer 1

Answer:The debt-to-equity (D/E) ratio is calculated by dividing a company's total liabilities by its shareholder equity. These numbers are available on the balance sheet of a company's financial statements. The ratio is used to evaluate a company's financial leverage.

Explanation:The Formula for the D/E Ratio Is

\begin{aligned} &\text{Debt/Equity} = \frac{ \text{Total Liabilities} }{ \text{Total Shareholders' Equity} } \\ \end{aligned}

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Debt/Equity=

Total Shareholders’ Equity

Total Liabilities

​ Assets=Liabilities+Shareholder Equity

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