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.

Analyze Debt-to-Equity Ratio by Sector

See how debt-to-equity ratio varies across Indian market sectors:

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter Indian stocks by Debt-to-Equity Ratio.

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