Rytvae Consulting · Think Right · Invest Right
Debt-Equity Ratio Calculator
Result
Chart
Show formula & working
Long-term D/E = (Long-term borrowings + Current maturities) ÷ Net worth
Total D/E = (Long-term + Short-term borrowings) ÷ Net worth
Typical lender reference: up to 2:1 (long-term debt) — a reference point, not an approval criterion.Details
How this works
Debt-equity shows how much of the business is funded by lenders compared with owners. Term lenders usually look at the long-term version.
Moving subordinated promoter loans to equity lowers the ratio, as many lenders do when those loans cannot be withdrawn during the loan.
Frequently asked questions
Why add back current maturities?
They are part of the term debt, just due within the year; Schedule III shows them under short-term borrowings.
Should TNW be used instead of net worth?
Some lenders do. Enter tangible net worth in the equity box for that view.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.