Debt equity ratio define how much earning time you will require to pay all your debt .It also shows level of debt with your income .You can use yearly formula to check your financial position .
| Total Debt(including interest) | Gross Income | Years to Pay your Debt |
|---|---|---|
| 50000 | 10000 | 5 year |
| 30000 | 20000 | 1.5 year |
| 1000 | 1500 | 9 months |
Lower ratio shows better financial condition.Keep your debt income ratio low to avail better credit rating.