Debt to equity ratio is a measure of a company’s financial leverage or how much it relies on debt to finance its assets. It shows how much of a company’s total debt is matched by its shareholder equity. It is calculated by dividing the total debt by the shareholder equity. It is reported as a percentage. The formula for debt to equity ratio is:
Debt to equity ratio = (Total debt / Shareholder equity) * 100
Where:
- Total debt is R0036,
short_and_long_term_debt
- Shareholder equity is BS072,
bs_total_equity