Shareholder Equity Ratio: Definition and Formula for Calculation. By. Adam Hayes. Full Bio. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.

The usual formula for the ratio is total debt divided by equity. So if total debt is $12,000,000 and equity $9,000,000, the debt-to-equity ratio is calculated as follows: 12,000,000 / 9,000,000 ...

Using the debt-to-equity formula, the D/E ratio of Apple is calculated by dividing $308 billion by $57 billion. The result is over 5.4, meaning that Apple used more than $5.40 of debt for every ...

The debt-to-equity ratio formula also works in personal finance. Simply replace shareholders' equity with net worth. Someone with $10,000 in credit card debt, a $250,000 mortgage and a $20,000 car ...

Debt to equity ratio formula . The debt-to-equity ratio formula is quite straightforward: D/E ratio = Total debt / total shareholders' equity. Here's a breakdown of the components: ...

Using the debt-to-equity formula, the D/E ratio of Apple is calculated by dividing $308 billion by $57 billion. The result is over 5.4, meaning that Apple used more than $5.40 of debt for every ...

Debt-to-Equity Ratio Formula & Example. The debt-to-equity (D/E) ratio is used to measure how much leverage a company is using by comparing its total liabilities to its shareholder equity.

The formula is total liabilities divided by total shareholders' equity. Why Debt-To-Equity Ratios Vary One of the major reasons why D/E ratios vary is the capital-intensive nature of the industry.

Companies finance their assets through two means: Debt and equity. Let's imagine company A has assets totaling $300,000 that is has financed issuing $200,000 worth of debt and $100,000 of equity: ...

The formula for calculating the margin-to-equity ratio is the following: ME = Margin / Equity The ME ratio helps determine the risk level associated with margin trading activities.

The equity-to-asset ratio tells a potential investor just how much of a company's assets are debt-free. Learn more about this vital piece of information inside.