giants2010

debt ratio DR = debt (d) divided by total capital (d+e)

while d/e is just that!

it is similar to mark-up and margin, one can easily be converted to the other.

Houjichasan

janakisiri clarified this somewhere else.

If Debt ratio = 0.25, then D/E = 0.25/0.75 = 1/3
If Debt ratio = 0.30, then D/E = 0.3/0.7 = 0.429
If Debt ratio = 0.5, then D/E = 0.5/0.5 = 1.0
If Debt ratio = 0.95, then D/E = 0.95/0.05 = 19

etc

If D/E = 0.25/0.75, then Debt ratio = 0.25
If D/E = 25/75, then Debt ratio = 0.25
If D/E = 40/60, then Debt ratio = 0.40