Work out debt equity ratio instantly with clear inputs, formula shown and shareable results.
Debt to equity compares borrowed capital with owners' capital. Netting off cash gives the ratio lenders actually focus on, and gearing restates the same information as debt's share of total capital, which is the form most covenants use.
Debt to equity
D/E = Total debt / Shareholders' equity
Gearing
Gearing % = Debt / (Debt + Equity) x 100
It is entirely sector-dependent: utilities and property routinely run above 2.0 on stable cash flows, while software companies often sit near zero.
Yes under IFRS 16 — lease liabilities are debt. Excluding them understates leverage for any retailer or logistics business.