Liabilities

• 1). Determine a company's known debt-to-equity ratio. For example, use a debt-to-equity ratio of 0.75.
  
  
• 2). Determine a company's known owners' equity. For example, use $150,000 in owners' equity.
  
  
• 3). Multiply the debt-to-equity ratio by owners' equity to figure total liabilities. For example, multiply 0.75 by $150,000. This equals $112,500 in total liabilities; compared to $150,000 in owners' equity, which means the company is a lower risk.
  
  

Owners' Equity

• 1). Determine a company's known debt-to-equity ratio. For example, use a debt-to-equity ratio of 1.3.
  
  
• 2). Determine a company's known total liabilities. For example, use $260,000 in total liabilities.
  
  
• 3). Divide total liabilities by the debt-to-equity ratio to figure owners' equity. For example, divide $260,000 by 1.3. This equals $200,000 in owners' equity; compared to $260,000 in total liabilities, which means the company is a higher risk.