Debt to Capital Ratio Calculator

Debt to Capital Ratio Calculator calculator can be used to determine the proportion of a company's debt to its total capital. This ratio helps in assessing the financial leverage and risk of a company.

Input Parameters

Calculation Results

Calculation Formula

Debt to Capital Ratio = Total Debt / (Total Debt + Total Equity)

Where:
Total Debt: The total amount of debt a company owes.
Total Equity: The total equity value of the company.

Debt to Capital Ratio Calculator Calculator Usage Guide

Learn how to use the Debt to Capital Ratio Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the total debt of the company in the "Total Debt" field.
  2. Enter the total equity of the company in the "Total Equity" field.
  3. Click the "Calculate" button to compute the Debt to Capital Ratio.
  4. The result will be displayed in the "Debt to Capital Ratio" field.

Understanding the Debt to Capital Ratio

The Debt to Capital Ratio is a financial metric that measures the proportion of a company's debt to its total capital. It is calculated by dividing the total debt by the sum of total debt and total equity. This ratio helps investors and analysts assess the financial leverage and risk associated with a company.

A higher Debt to Capital Ratio indicates that a company has a higher proportion of debt in its capital structure, which may increase financial risk. Conversely, a lower ratio suggests a more conservative capital structure with lower financial risk.

It is important to compare the Debt to Capital Ratio with industry benchmarks and historical data to gain meaningful insights into a company's financial health.