Debt-to-Equity Ratio Calculator

Debt-to-equity ratio = total debt / total equity. Defaults: 60 of total debt against 100 of total equity gives 0.60x. A higher ratio means the company relies more on borrowed money relative to owner capital.

Debt-to-equity ratio is conventionally quoted as a multiple (like 0.60x) rather than a percentage, since that is how lenders and analysts read it on financial statements. The percent version is shown too, for reference.

Use whatever total equity figure matches the period or balance sheet date you are analyzing, and make sure total debt covers the same period so the ratio is apples-to-apples.

Generally yes for debt-to-equity ratio -- more cushion is safer. But an unusually high ratio can also mean a company is sitting on idle capital instead of deploying it, so compare against industry norms rather than assuming bigger is always better.