Check debt ratio, debt-to-equity ratio, and times interest earned from total debt, assets, equity, EBIT, and interest expense.
$220,000 debt / $500,000 assets
Debt ratios are statement math. They need industry context, debt maturity dates, cash-flow quality, lease treatment, covenant rules, and interest-rate risk before anyone treats them as safe or unsafe.
Recent debt ratio checks will appear here.
Debt ratio checks stay in this tab. They do not decide loan approval, solvency, credit risk, covenant compliance, taxes, or investment quality.
Inputs and recent answers stay in this browser tab and are not sent to a server.
See what share of assets is funded by debt.
Compare debt with owner equity on the same balance sheet.
Check whether EBIT covers the interest expense entered.
Use beside liquidity and profitability ratios before trusting one number.
44% debt ratio, 0.79x debt-to-equity, 6x interest cover
64% debt ratio, 1.78x debt-to-equity, 2.5x interest cover
17.14% debt ratio, 0.21x debt-to-equity, 13x interest cover
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Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it when you want to test the exact inputs on this page: See what share of assets is funded by debt. Compare debt with owner equity on the same balance sheet. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
Total debt means the debt or total liabilities number you want to compare with assets and equity. Use one clear definition and keep it consistent. Total assets and total equity means balance sheet totals from the same date, so the debt ratio and debt-to-equity ratio are not mixing periods. EBIT and interest expense means income statement numbers from the same period, used for the times-interest-earned coverage check.
Debt ratio compares total debt with total assets. Debt-to-equity compares the same debt with owner equity. They tell a similar debt-load story, but the denominator changes, so the numbers will not match.
Times interest earned uses EBIT, not bank cash. A company can show enough EBIT for interest coverage while receivables are late, inventory is stuck, principal payments are due, or cash flow is weak.
Use the definition your statement, lender, class, or analysis requires. Some checks use interest-bearing debt only. Others use total liabilities. The important part is labeling it honestly and comparing the same definition each time.
In plain language: Debt ratio = total debt / total assets. Debt-to-equity = total debt / total equity. Times interest earned = EBIT / interest expense. Use balance sheet numbers from one date for debt, assets, and equity. Use EBIT and interest expense from the same income statement period.
Debt ratio shows the asset share funded by debt. Debt-to-equity shows debt compared with owner capital. Times interest earned shows how many times EBIT covers the interest expense entered.
This does not audit financial statements, classify leases, check maturity dates, test refinancing risk, prove cash flow quality, read lender covenants, assign credit ratings, calculate taxes, or give investment advice. Use financial statements, footnotes, cash-flow reports, maturity schedules, covenant documents, industry benchmarks, and a qualified accountant before using debt ratios for lending, investing, or survival decisions.
Double-check whether the debt field should mean total liabilities or only interest-bearing debt. Then check that assets, equity, EBIT, and interest expense all come from matching statements.
Times interest earned compares EBIT with interest expense. A result of 6x means EBIT is six times the interest expense entered. It is a rough interest-coverage check, not a cash-flow promise.
It depends on the industry and business model. Some stable asset-heavy businesses use more debt. Young or risky businesses may need less debt because cash flow is less predictable.
Only carefully. A utility, retailer, software company, and construction business can all have different normal debt levels. Compare with similar businesses, trends over time, lender rules, and the notes to the financial statements.
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.