Debt to Equity formula
\[ \dfrac{\text{Total liabilities}}{\text{Equity}} \]
Terms
- Equity, closing balance: Owners’ stake: share capital, reserves and retained earnings, including the current year’s result.
- Total liabilities, closing balance: Everything the company owes to others: current plus non-current liabilities.
Result
Debt to Equity is a ratio. Lower is better.
Target
There is no general target; compare with the company’s own history and with peers in the same industry.
Debt to Equity pitfalls
- Some sources count only interest-bearing debt in the numerator. That version suits lending analysis; this one shows the full claim of creditors. Say which one a report uses.
Debt to Equity in Business Central
Equity (closing balance)
- Every income statement account
- Category Equity (14) and every category below it
141 posting accounts in total.
The full account list is on the Equity page.
Total liabilities (closing balance)
- Category Liabilities (10) and every category below it
- Plus 1 account assigned directly: 23850 Employees Payable
33 posting accounts in total.
The full account list is on the Total liabilities page.
Add Debt to Equity to a Power BI report
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