How to find debt ratio with liabilities and equity
Answers
Answered by
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}
Debt/Equity=
Total Shareholders’ Equity
Total Liabilities
Assets=Liabilities+Shareholder Equity
Similar questions