Which inputs do I need?

You need: Total debt (m) · Shareholder equity (m). The result updates live as you type.

Where do I find Total debt?

Balance sheet: short-term + long-term borrowings (bonds, loans). Add short-term and long-term interest-bearing debt.

How do I interpret the result?

Rule of thumb: 2 risky - very industry-dependent (utilities/banks carry more).

Is the Debt-to-Equity Ratio Calculator free to use?

Yes, free, no registration required. The results are not investment advice or a recommendation.

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Debt-to-Equity Ratio Calculator

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

Also available in German: Verschuldungsgrad-Rechner →

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	0.05	0.24	3,066
Communication Services	0.00	0.06	0.45	1,029
Health Care	0.00	0.07	0.31	2,026
Consumer Discretionary	0.00	0.08	0.33	3,463
Consumer Staples	0.01	0.09	0.37	1,592
Materials	0.01	0.10	0.33	3,076
Industrials	0.01	0.12	0.45	4,924
Energy	0.02	0.18	0.55	1,067
Financials	0.05	0.26	0.86	2,707
Real Estate	0.09	0.40	0.82	1,730
Utilities	0.16	0.67	1.35	643

Source: the Fair Value Calculator database, 25,323 stocks with a valid value for Debt-to-equity, as of Sep 5, 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 →

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.