<Li> Debt / Equity </Li> <Li> Long - term Debt / Equity </Li> <Li> Total Liabilities / Equity </Li> <P> In a basic sense, Total Debt / Equity is a measure of all of a company's future obligations on the balance sheet relative to equity . However, the ratio can be more discerning as to what is actually a borrowing, as opposed to other types of obligations that might exist on the balance sheet under the liabilities section . For example, often only the liabilities accounts that are actually labelled as "debt" on the balance sheet are used in the numerator, instead of the broader category of "total liabilities". In other words, actual borrowings like bank loans and interest - bearing debt securities are used, as opposed to the broadly inclusive category of total liabilities which, in addition to debt - labelled accounts, can include accrual accounts like unearned revenue . </P>

What is included in debt to equity ratio