Debt equity ratio

Debt Equity Ratio = Debt / Equity

Debt Ratio = Debt / Debt + Equity

So use it respectively.

Importance of Debt-equity ratio

For most companies, the maximum acceptable debt-to-equity ratio is 1.5-2 and less. For large public companies the debt-to-equity ratio may be much more than 2, but for most small and medium companies it is not acceptable.

High debt ratio clearly indicated that the company unable to generate enough cash to satisfied the debt.

Every company works on their own business model within the same industry, If you keep an eye on the reduction of debt with the same circumstances to the company with same industry, that means the company is working better then the other company in the sector.

https://financialcontrol.in/what-is-debt-to-equity-ratio/