What this calculator does
Leverage & solvency ratios works out how much of a company is financed by debt, and how easily it covers interest. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaDebt-to-equity = Debt / Equity; Debt-to-assets = Debt / Assets; Equity multiplier = Assets / Equity; Interest coverage = EBIT / Interest expense
The inputs explained
| Field | What to enter |
|---|---|
| Total debt ($) | A number, measured in your currency. Starts at 400000. |
| Total equity ($) | A number, measured in your currency. Starts at 600000. |
| Total assets ($) | A number, measured in your currency. Starts at 1000000. |
| EBIT (operating profit) ($) | A number, measured in your currency. Starts at 180000. |
| Annual interest expense ($) | A number, measured in your currency. Starts at 30000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with total debt
Every other input is held at the calculator’s starting values while total debt varies. Select any row to load that scenario into the calculator.