Debt-Equity Ratio
The Debt/Equity ratio is a measure of a company's reliance on debt, otherwise known as its financial leverage.
debt-equity ratio
measure used in the analysis of financial statements to show the amount of protection available to creditors. The ratio equals totalliabilitiesdivided by total stockholders' equity; also calleddebt to net worth ratio.
DEBT-EQUITY RATIO - The ratio of a company's liabilities to its equity. Long-term debt-equity is the ra...
DEBT-FOR-EQUITY SWAP - A swap agreement to exchange equity/returns for debt returns or the converse ove...
Debt-equity ratio:
The ratio of a company's long-term liabilities (debts) to its Equity (i.e. shareholders' funds). The higher the ratio, the greater the financial Leverage/Gearing of the firm.
Debt-Equity Ratio This ratio is used to analyze FINANCIAL LEVERAGE. It is a structural ratio that gauges the level of debt financing, and is worked out by dividing total debt, short-term and long-term, by NET WORTH.
debt-equity ratio: A value calculated by dividing the long term debt by the common stockholders' equity.
debtor: A person or entity who owes payment.
A model of the debt-equity ratio of the firms, graphically depicted in slices of a pie that represent the value of the firm in the capital markets.
Accounting Dictionary:
Debt-Equity Ratio
Top
Home > Library > Business & Finance > Accounting Dictionary ...
Pie model of capital structure A model of the debt-equity ratio of the firms, graphically depicted in slices of a pie that represent the value of the firm in the capital markets.
A firm's debt-equity ratio is often referred to as its GEARING. Taking on more debt is known as gearing up, or increasing lever age.
The required rate of return on equity increases as the firm's debt-equity ratio increases.
A federal Act shielding employers from liability if they have made
a good-faith effort to verify a new employee's identity and employment eligibility.
Not all bonds can be traded in "pieces," and the increments can vary. Pie model of capital structure
A model of the debt-equity ratio of the firms, ...
 See also: Acquisitions, Capital structure, Expense, Banks, Sinking Fund
  
|
RSS
