Capital Structure / Debt-to-Equity Analyzer
"Visualize how your debt and equity mix impacts financial health, valuation, and risk profile."
The right capital structure balances growth and risk. Too much debt increases financial pressure, while too much equity can dilute returns. This analyzer helps you calculate your debt-to-equity ratio, visualize leverage scenarios, and understand how financing decisions affect your company's stability and value.
Scenario Controls
Debt vs Equity Composition
Debt = 40.0% of total capital
$500K Debt / $750K Equity
Scenario Comparison
Base Case Results
Debt-to-Equity Ratio
0.67x
Debt Ratio
40.0%
Equity Ratio
60.0%
WACC
9.15%
Leverage Classification
ConservativeScenario Insights
Strategic Insights
🎯 Optimal Target: 2.90x D/E Ratio
This leverage level minimizes your cost of capital
What is Capital Structure?
Capital structure represents the proportion of financing a company uses through debt and equity. The goal is to find a mix that maximizes shareholder value while minimizing financing costs.
Key Formulas
Debt-to-Equity Ratio = Total Debt ÷ Total Equity
Measures leverage relative to equity base
WACC = (E/V × Re) + (D/V × Rd × (1−Tc))
Weighted Average Cost of Capital
where V = D + E
Total firm value equals debt plus equity
Example Insight
A company with 60% equity and 40% debt may have lower financing costs, but higher equity reduces return leverage for owners. The optimal structure balances tax benefits of debt against financial distress costs.