Leverage
What is Debt-to-Equity Ratio?
The D/E ratio shows how much debt a company uses relative to its equity, measuring financial leverage and risk of over-borrowing.
Formula
Debt-to-Equity = Total Debt ÷ Shareholders' Equity
How to Interpret
Lower ratios indicate less financial risk. High D/E amplifies both gains and losses. Compare within the same industry.
Typical Ranges
Below 0.5 is conservative, 0.5-1.0 moderate, above 2.0 is aggressive. Banks excluded.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Debt-to-Equity Ratio.