Financial KPI Examples | Debt to Equity Ratio

Debt to Equity Ratio

Measure how your organization is funding growth and how effectively you are using shareholder investments.

KPIs & Metrics 101

Everything you need to know about KPIs to start your data driven journey

KPIs & Metrics 201

Real life business examples of KPIs and how to establish key business metrics

Formula

Total Liabilities / Shareholders Equity

Services

QuickBooks Dashboard | Quickbooks logo Xero Dashboard | Xero Logo

Role

C-Level, VP / Director

Overview

The Debt to Equity Ratio measures how your organization is funding its growth and how effectively you are using shareholder investments. A high debt to equity ratio is evidence of an organization fuelling growth by accumulating debt. This is a common practice, as outside investment can greatly increase your ability to generate profits and accelerates business growth; reaching too far, however, can backfire and leave the company bankrupt.

See also