Debt Equity Ratio measures the relationship between long-term debt and share capital.

If debt
Debt Equity Ratio: component of long-term funds employed of the company is smaller than the share capital
outsiders feel more secure i.e., Less debt and more equity is considered to be favorable as it
reduces risk of bankruptcy. 2:1 is considered safe debt-equity ratio.
It is calculated by a formula given below:
Debt-Equity Ratio = Long Term Debt
Shareholders Funds
Nestle’s Debt Equity Ratio for Year Ending Dec’20: Nestle’s Debt Equity Ratio For the year ending Dec’19:

Debt Equity Ratio: 34.84 * Debt Equity Ratio: 53.14 *

2019.34 1918.87
: 0.017 or 1.7% : 0.027 or 2.7%

* In Crores * In Crores
Debt Equity Ratio

In Crores
0.6

0.5
Britannia’s Debt Equity Ratio 2020-21:
0.4
Debt Equity Ratio: 1797.25 * 0.3
3319.53
0.2
: 0.55 or 55%
0.1

*In crores 0
Nestle's 2019 Nestle's 2020 Britannia's 2020-21