Debt to Capital Ratio

Calculate debt to capital ratio.

Debt to Capital Ratio Calculator

Debt to Capital Ratio Calculator

Measure financial leverage by calculating the proportion of debt in a company's capital structure

Calculate Debt to Capital Ratio

Short-term + long-term debt

Shareholders' equity

Total debt + total equity

Results

Debt to Capital Ratio

As Percentage

Total Capital

Risk Level

Equity Ratio

Interpretation

Formula

Debt to Capital Ratio =
Total Debt ÷ Total Capital

Where Total Capital = Total Debt + Total Equity

Components:

  • Total Debt: Short-term + long-term debt
  • Total Equity: Shareholders' equity
  • Total Capital: Debt + equity financing

Interpretation

Low Risk (0-0.3)

Conservative capital structure, low financial risk

Moderate Risk (0.3-0.5)

Balanced capital structure, moderate leverage

High Risk (0.5-0.7)

Highly leveraged, increased financial risk

Very High Risk (>0.7)

Extremely high leverage, significant risk

Usage Examples

When to Use:

  • Assessing financial leverage
  • Comparing capital structures
  • Evaluating financial risk
  • Credit analysis

Key Considerations:

  • Industry standards vary
  • Consider debt maturity
  • Analyze trends over time
  • Compare with peer companies
v1.0.0.758733

Get Results of Debt to Capital Ratio via Email

Save your calculations and get detailed breakdowns

We respect your privacy. No spam, unsubscribe anytime.

v1.0.0.758733