What is Total Debt to Equity (in percent)?
Cfefinances
Total Debt to Equity, expressed as a percentage, is calculated as Total Debt divided by Total Stockholders' Equity. It measures how much of a company's financing comes from debt relative to equity. A higher ratio indicates greater financial leverage and typically greater financial risk.
Think about how much financing comes from debt versus owners. Divide total debt by stockholders' equity — higher means more leverage and risk.