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- To calculate the debt-to-equity ratio, you need to check the balance sheet of your company and find the following two elements1:
- Total liabilities - a sum of short-term debt, long-term debt, and other financial obligations.
- Stockholders' equity - represents the company's book value. This metric can be found by subtracting liabilities from the sum of a company's assets.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.If you want to calculate the debt-to-equity ratio, you need to check the balance sheet of your company and find the following two elements:
- Total liabilities - a sum of short-term debt, long-term debt, and other financial obligations.
www.omnicalculator.com/finance/debt-to-equityExample
- Total liabilities = (Current liabilities + Non-current liabilities) = ($49,000 + $111,000) = $160,000.
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