Capital Structure Ratios Calculator - Young Investor Calculator

Calculate Leverage and Capital Composition Ratios

Select a formula and enter financial data to calculate leverage ratios. All monetary values should be in the same currency (e.g., USD or GHS).

Select Formula

Calculation Results

Interpretation:

Understanding Leverage and Capital Composition Ratios

These ratios measure the mix of debt and equity in a firm's capital structure, providing insights into financial leverage and risk. Use them for credit analysis, peer comparisons, or M&A due diligence.

Low Leverage

Low D/E, High Equity Ratio

Indicates conservative financing with lower risk but potentially higher cost of capital.

High Leverage

High D/E, Low Equity Ratio

Suggests aggressive financing with higher risk but potentially lower cost of capital.

How to Use the Calculator

Select a Formula
Choose a ratio from the dropdown to calculate.
Enter Financial Data
Input required values (e.g., Total Debt, Equity) from financial statements or market data.
Calculate and Review
Click “Calculate” to compute the ratio. Compare to industry benchmarks for insights.

Key Applications

Assessing financial risk for credit analysis
Comparing capital structures across peers
Evaluating leverage for M&A or refinancing
Input for WACC calculations (market proportions)

Download Guide Watch Tutorial

To calculate leverage ratios, you need accurate financial data. Here’s how to find it:

Book Value Data (Total Debt, Equity, Assets)
Find in the balance sheet:
- Yahoo Finance: Search ticker, go to “Financials” > “Balance Sheet.”
- gse.com.gh: Check financial statements for GSE-listed companies.
- Annual Reports: Access via company websites or annualreportsghana.com.
Market Value Data
Calculate market values:
- Equity: Share price × shares outstanding (Yahoo Finance).
- Debt: Bond prices or debt market value estimates (Bloomberg).
Cash and Cash Equivalents
Find in the balance sheet under current assets.
Capitalized Leases
Check lease disclosures in financial statements (IFRS 16/ASC 842).
Tips
- Verify data from multiple sources for accuracy.
- For Ghanaian companies, check gse.com.gh for updates.
- Use historical data for past ratios, analyst estimates for projections.

Examples:

Access Bank Ghana (ABG): Total Debt = GHS 1.2B, Equity = GHS 800M, Assets = GHS 2B (gse.com.gh).
JPMorgan Chase (JPM): Total Debt = $300B, Equity = $200B, Market Equity = $400B (Yahoo Finance).