Determination of Debt / Equity ratio is an important aspect of Financial Management. The present study discusses this aspect in detail. It discusses about the various factors that decide the amount of debt in an organisation. Data relating to long term, short term and total debt along with various factors for large, medium and small capitalisation companies in India have been analyzed. Various research tools like descriptive statistics, correlation anlysis and multiple regression techniques have been used in analysis. The present study will be useful for the Finance Managers in companies. It will also be useful for the researchers who want to carry out research work in this area. The study will also benefit the Management Institutions as it adds to the already existing information in text books on Financial Management.