Debt To Capital Ratio Calculator


Calculate your debt-to-capital ratio easily with our calculator. Assess your financial leverage and make informed business or investment decisions.



Result Debt To Capital Ratio 0 debtToCapitalRatio
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Formula

Debt to capital ratio = Interest bearing debt / ( Interest bearing debt + Shareholders equity )

$16000 / ( $5000 + $1500 ) = 2.4615.This result means that for every dollar of shareholder's equity, the company has approximately $2.46 worth of interest-bearing debt.

Meaning

The Debt to Capital Ratio is a financial metric that measures the amount of debt a company has compared to its total capital, which includes both debt and equity. It provides insight into a company's leverage, liquidity, and ability to meet its short-term obligations.

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