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Debt-to-Equity Ratio Calculator

How heavily is the company financed by debt vs. equity?

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Inputs

Total debt (m)

Total debt

Also called: Interest-bearing debt, borrowings

Where to find it: Balance sheet: short-term + long-term borrowings (bonds, loans).

How to derive: Add short-term and long-term interest-bearing debt.

Shareholder equity (m)

Shareholder equity

Also called: Net assets, book value

Where to find it: Balance sheet, bottom of the liabilities & equity side.

How to derive: Total assets − total liabilities.

Result, live

Debt/Equity

–

as percentage

–

Rule of thumb: < 1 solid, > 2 risky - very industry-dependent (utilities/banks carry more).

The debt-to-equity ratio puts total debt in relation to shareholder equity. It shows how heavily a company relies on borrowed money, and therefore how well it can weather a downturn or rising rates.

How the formula works

You divide total debt by shareholder equity. A value of 1 means debt and equity are equal in size.

Debt/Equity = total debt ÷ equity

Example: $4,000m debt on $6,000m equity. Ratio = 4,000 ÷ 6,000 = 0.67 (67%), conservatively financed.

How to read the result

Below 1.0: conservatively financed.
1.0 to 2.0: normal, within range.
Above 2.0: highly leveraged, vulnerable to rate or revenue drops.

What to watch out for

Highly industry-dependent: utilities and banks tolerate far more debt than, say, software firms.
With negative equity the ratio is not meaningful.
Some count only financial debt, others all liabilities, check what is being compared.

Debt-to-equity by sector

A debt-to-equity ratio only means something next to the company's own sector: utilities and real estate carry more debt by nature, technology often almost none. The table shows median and range for every sector from our database, updated daily.

Debt-to-equity by sector: median and range
Sector	Lower quartile	Median	Upper quartile	Stocks
Information Technology	0.00	0.06	0.24	2,983
Health Care	0.00	0.08	0.30	1,907
Communication Services	0.00	0.08	0.50	901
Consumer Discretionary	0.01	0.10	0.35	3,189
Consumer Staples	0.01	0.10	0.36	1,530
Materials	0.01	0.10	0.32	2,912
Industrials	0.01	0.12	0.45	4,818
Energy	0.04	0.25	0.62	832
Financials	0.05	0.26	0.83	2,563
Real Estate	0.12	0.43	0.85	1,685
Utilities	0.15	0.66	1.30	631

Source: the Fair Value Calculator database, 23,951 stocks with a valid value for Debt-to-equity, as of Oct 15, 2026. Median: half of the sector's stocks sit below it. Lower and upper quartile: 25 % sit below or above. Values move daily with prices. All valuation ratios by sector →

Debt-to-equity by industry and sector: all industries, quartiles, CSV →

Frequently asked questions

Does every liability count as debt?

For this ratio, interest-bearing financial debt counts, short- and long-term loans and bonds. Operating liabilities like supplier invoices are left out.

Is a lower value always better?

Not necessarily. Some debt can lift return on equity. It only turns dangerous when debt outgrows the company's earning power.

Where do I get debt and equity figures?

In our Fair Value Calculator debt, equity and the debt-to-equity ratio are already on file for 35,000+ stocks, no typing required.

What value is normal in my sector?

See the table in the sector comparison section: median and range for every sector from our database, updated daily. A value near the median of the company's own sector is usual; well below or above it calls for a reason in the business model.