Debt to Equity Ratio Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
Youth Company has the following information –
Current Liabilities - $49,000
Non-current Liabilities - $111,000
Common Stocks – 20,000 shares of $25 each
Preferred Stocks - $140,000
Find out the debt to equity ratio of Youth Company.

Here, First We will find out the Total Liabilities and shareholders' Equity

Current liabilities 49000

Non-current liabilities 111000

Total Liabilities 160000 =D12+D13

Common Stocks 20000 25 Shares of each

Preferred Stocks 140000

Total shareholders’ equity 640000 =(D19*E19)+D20

Now We will calculate the Debt to Equity Ratio

Total liabilities 160000

Total shareholders’ equity 640000

The debt to equity ratio of Youth Company is 0.25 =D24/D25