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What is the debt ratio?

How much a company owes relative to what shareholders actually own.

Apple Inc., COCA COLA CO compared — live data

Companythe debt ratioHealth Score
Apple Inc.607.9%47.5
COCA COLA CO304.5% ✓50.5

✓ = better on this metric alone (lower wins). Values refresh from live data on every request.

What it is

This site's debt ratio is total liabilities divided by shareholders' equity. It shows how many dollars of debt and other obligations exist for every dollar that actually belongs to shareholders — the standard read on how much financial risk a company is carrying.

How it's calculated

Debt ratio = total liabilities ÷ equity × 100. A ratio of 100% means liabilities and equity are equal in size; well above that means the company is financed mostly by borrowing rather than shareholders' own capital.

How to read the number

Lower generally means less financial risk — the company can weather a bad year without its lenders forcing the issue. But some industries (utilities, real estate, banks) run on structurally higher leverage as part of a normal, stable business model, so the right comparison is against peers in the same industry, not an absolute threshold.

Common mistakes

High leverage isn't automatically dangerous, and low leverage isn't automatically safe — a highly leveraged company with steady, predictable cash flow (like a regulated utility) can be safer than a low-debt company with wildly unpredictable earnings. Debt level and earnings stability need to be read together.

Related terms

What is ROE (Return on Equity)? What does a going-concern flag mean?

Not investment advice. ← All investing terms · Screen stocks yourself →