Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report
Balance Sheet
Debt-to-Equity Ratio
Total debt divided by total equity.
Definition
Debt-to-equity measures the company's financial leverage — how much of its capital structure is funded by creditors versus shareholders.
Formula
Total Debt ÷ Total Equity
Why it matters
Leverage amplifies returns in good times and losses in bad. Acceptable D/E varies dramatically by sector — utilities often run 1.0x+, software firms run near 0x. A spiking D/E ratio is one of the earliest warning signs of capital structure stress.
How Standard Equity uses it
Shown in the main financial table for non-bank companies. For banks we substitute Equity-to-Assets, the regulator-relevant capital adequacy ratio.
The metric
| Category | Balance Sheet |
|---|---|
| Unit | x |