Solvency Ratios
Debt Ratio – Calculates the portion of Total Assets relative to Total Liabilities. In our example Total Liabilities $144,780 / Total Assets $384,540 = 37.65%
Equity Ratio – Calculates the portion of Total Assets relative to Total Equity. In our example Total Equity $230,760 / Total Assets $384,540 = 62.35%
Debt-to-Equity Ratio – Calculates the balance between liabilities and equity. Total Liabilities $144,780 / Total Equity $230,760 = .627