A measure of how much debt your business has in relation to the amount of equity invested in it. A high level of debt to equity can be of concern. To support your company, you can raise money either by borrowing it (incurring a debt) or by selling ownership in the company (equity). To calculate, divide total Liabilities by Equity.
The proportion of capital borrowed to the amount of capital invested out-of-pocket or obtained through the sale of common stock-also called leverage ratio.
Shows the relationship between funds provided by borrowing and funds provided by shareholders. The debt/equity ratio shows to what extent a company is financed by debt (also called the gearing or leverage ratio).
A gearing ratio that relates to financial gearing, which is the relationship between a company's borrowings, which includes both prior charge capital and long-term debt, and its ordinary shareholders' funds (share capital plus reserves).
A measure of a company's leverage, calculated by d... Add a comment
the amount of money a company has borrowed divided by shareholders' equity.
Determined by dividing long-term debt by common stockholder equity. It is one of the most useful financial ratios. Creditors use it to see whether it is safe to lend money to the particular company. The ratio should ideally be around 2.
The ratio between an enterprise's loan capital and its equity capital.
Equals net borrowings divided by shareholders funds as reflected in a balance sheet.
The relationship between the amount of capital supplied by the shareholders and the amount provided from borrowing, expressed as a ratio.
Measures the debt and equity mix. The higher the level of debt, the greater the fixed costs, and thus the more operational risk assumed.
Net interest-bearing liability divided by adjusted equity.
Total liabilities divided by total equity.
long-term debt divided by shareholders' equity.
a measure of long-term financial solvency of a firm showing the relationship between borrowed capital and owner's equity. Debt/Equity ratio is calculated by taking long-term debt and dividing it by Total Equity. A high ratio might indicate room for capital expansion.
Creditors' assets divided by shareholders'.
Shows the amount of net debt in proportion to equity capital. Formula: Interest-bearing net liabilities / Equity. Stora Enso's target is a debt/equity ratio at or below 0.8.
A measure of the indebtedness of a company. Usually one of: long term debt ÷equity, total debt ÷equity or net debt ÷equity... more on Debt/equity ratio
Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long term debt by common stockholders' equity.
A ratio which describes the leverage or Gearing of the company and is calculated as total debt divided by common shareholders' equity expressed as a percentage. See Gearing
A measure of a companyâ€(tm)s leverage, calculated by dividing long-term debt by ordinary shareholdersâ€(tm) equity.
The amount of debt a company has, divided by the equity (price of all shares combined). If D/E ratio is greater than 1 it means the company has more debt than the company is worth. Ideally D/E should equal 0.
leverage or gearing ratio, calculated as total debt divided by common stockholders' equity times 100.
The ratio of long-term debt to shareholders' equity.
A comparison of debt and equity used to measure the health of a business.
Debt divided by the capital base plus debt. In ING's case, only core debt is taken into account.
Long-term debt plus current liabilities divided by the last fiscal year net equity per share of common stock for a given corporation. A ratio above 2:1 or 200% may be excessive and a sign of strained corporate finances.
A comparison of funds provided by creditors to funds provided by shareholders. (Borrowings divided by shareholders’ funds).
Net interest-bearing financial assets/liabilities divided by the total of shareholders' equity and minority interests.