What is the Debt to Equity Ratio Calculator?

The Debt to Equity Ratio Calculator is a financial tool that helps businesses and investors evaluate a company’s financial leverage and stability by comparing its total liabilities to shareholders’ equity. By entering total liabilities and equity, the calculator determines the Debt to Equity Ratio, indicating the proportion of debt used to finance the company relative to owner’s equity. A lower ratio generally implies lower financial risk and a more stable capital structure, while a higher ratio may indicate higher reliance on debt.

How to Use:

1. Enter Total Liabilities (PKR): Include all short-term and long-term obligations.
2. Enter Shareholders’ Equity (PKR): Input the total equity owned by shareholders.
3. Click “Calculate”: The calculator computes the Debt to Equity Ratio.
4. Review Result: The ratio is displayed along with its formula and a brief interpretation of financial risk.