# Debt-to-equity

> Debt-to-equity is a leverage and coverage metric, calculated as Total debt ÷ Total equity. Debt is interest-bearing borrowings (and, commonly, lease liabilities). Some use total liabilities — a different, larger ratio; state which.

Source: https://lopifi.com/glossary/debt-to-equity
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is debt-to-equity?** Debt-to-equity is a leverage and coverage metric, calculated as Total debt ÷ Total equity.

## Formula

`Total debt ÷ Total equity`

## Note

Debt is interest-bearing borrowings (and, commonly, lease liabilities). Some use total liabilities — a different, larger ratio; state which

- **Category:** Leverage & coverage
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** equity