Posted inAll sectors / Finance & Control / Financial

Debt to Equity Ratio

Definition of this KPI:
The Debt to Equity Ratio is a financial metric that assesses a company's capital structure and financial leverage by comparing its total debt to its shareholders' equity. It provides insights into the company's reliance on debt financing as opposed to equity financing.


  • This KPI can be calculated as: Total debt / shareholders equity
  • The KPI will be measured as: ratio (number)
  • How to interpret the KPI: depends on the goals
  • The strategic objective to measure with this KPI: Financial stability
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