simply calculated by dividing debt by shareholder equity. This is a measure of relative financial leverage. Overly leveraged companies are considerably riskier than minimal debt companies because the cost of debt makes earnings more volatile, and excessive debt can sometimes cause bankruptcy when business conditions deteriorate.
The proportion of debt to equity in a firm's financial structure.
1. Total liabilities divided by total shareholders' equity. This shows to what extent owner's equity can cushion creditors' claim in the event of liquidation. Usually called Debt Ratio. 2. Total long-term debt divided by total shareholders' equity. This is a measure of Leverage-the use of borrowed money to enhance the return on owners' equity.
a measure of a company's leverage, calculated by dividing long-term debt by common shareholders' equity
Usually, long-term debt divided by shareholder's equity.
Total liabilities divided by total shareholders' equity. This is a measure of the cushion available to creditors should the firm be forced to liquidate. The ratio is sometimes calculated by dividing total long-term debt by shareholders' equity.
A return of investment; an investment created by a form of debt, i.e., bank loan, investor funds, etc., of which is convened to profit then retained in earnings which is referred to as "owner" or "stock holder" equity.
Represents the portion of capital financed by long-term debt. Long Term Debt / Shareholders' Equity
Long-term debt divided by stockholders' equity. The ratio identifies the relationship of debt to ownership interest in the firm's financial structure. A measure of financial risk.
The amount of bonds and preferred stocks relative to the owners' equity position. The debt to equity ratio is a measurement of the use of borrowed funds to leverage owners' equity.
The relationship between the total amount owed to the lender and the investment of the owner. Also called the leverage ratio.
The ratio found by dividing long-term debt by the equity (all assets minus debts) held in stock (This is a measure of financial risk.)
Financial term comparing total liabilities to equity consisting of retained earnings and contributed capital.
A financial ratio, calculated by dividing a company's total long-term debt by its total equity, that is helpful in determining a company's solvency.
You find a company's debt-to-equity ratio by dividing its total long-term debt by its total assets minus its total debt. The ratio indicates the extent to which a company is leveraged, or financed by credit. A higher ratio is a sign of greater leverage, which may mean a fast-growing company or one that is overextended. Average ratios vary significantly from one industry to another, so what is high for one company may be normal for another company in a different industry. From an investor's perspective, the higher the ratio, the greater the risk you take in investing in the company. But your potential return may be greater as well if the company uses the debt efficiently to expand its sales and earnings.
Ratio of total liability to total shareholders' equity
Debt divided by shareholders’ equity, showing the relationship between funds provided by creditors and funds provided by shareholders; a high ratio may indicate high risk, a low ratio may indicate low risk.
(Financial Ratio Analysis based) The ratio of borrowings to capital investment in either an asset or a business.
1: The ratio of a company's securities with fixed charges to the company's common stock equity. To calculate, divide the total amount of preferred stock and bonds by the amount of common stock equity. 2: In the case of liquidation, the ratio indicates the extent owner's equity can cover creditors' claims. It is calculated by dividing total liabilities by total shareholders' equity. See: Liquidation 3: A ratio that is used to measure leverage. Leverage is the use of borrowed money to increase the return on owners' equity. To calculate, divide the total amount of long term debt by the total amount of shareholders' equity. See: Shareholder's Equity
A measure of a company's gearing, or borrowing. Calculated by dividing all financial debt by shareholders' funds (equity).
Total long-term debt divided by total shareholdersâ€(tm) equity. This is a measure of leverage – the use of borrowed money to enhance the return on shareholdersâ€(tm) equity. The higher the ratio, the greater the leverage.
The debt-to-equity ratio is commonly used to measure a company's leverage. Leverage is the use of borrowed money to enhance the return on owners' equity. The ratio is calculated by dividing a company's total long-term debt by its total shareholders' equity.
A ratio calculated by dividing a company's long-term debt by its stockholders' equity. Because long-term debt reflects obligations that a company must eventually repay, a high ratio may indicate high risk.
The ratio of total debt to total shareholder equity indicates the level of capability for repayment of outstanding creditors. In addition, long-term debt as a function of shareholder equity indicates the degree of leveraged money to improve shareholder rates of return.