Debt/equity Ratio
The debt/equity ratio is a capitalization ratio. The debt/equity ratio equals the sum of company's bonds plus preferred stock divided by the sum of its common stock at par plus capital surplus plus retained earnings.
Debt/equity Ratio
Debt/equity Ratio definition :
Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long-term debt by common stockholder equity.
Debt/equity ratio
Debt to equity is the commonest type of gearing ratio. There are three basic variations on this ratio:
long term debt ÷equity
total debt ÷equity
net debt ÷equity ...
Debt/Equity Ratio
Investment Dictionary:
Debt/Equity Ratio
Home > Library > Business & Finance > Investment Dictionary ...
debt/equity ratio
A company's long-term debt divided by its shareholders' equity.
Debt/Equity Ratio
A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets.
DEBT/EQUITY RATIO - Indicator of financial leverage. Compares assets provided by creditors to assets pr...
DEBTAHOLIC - A borrower who cannot handle debt except by complete abstinence.
DEBTEE - a creditor, one who lends money.
Debt/Equity Ratio
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.
Debt/Equity Ratio. A comparison of debt to equity in a company's capital structure.
Debt/Equity Swap. A transaction in which a corporation exchanges newly issued stock (equity) for already existing bonds (debt).
Debt/equity ratio
Debt divided by the capital base plus debt. In ING's case, only core debt is taken into account.
Depositary receipt for share ...
Debt/equity ratio - A comparison of debt and equity (worth) to measure the health of a business.
Debit - A subtraction or minus an amount of money.
Debt/Equity Ratio
A ratio that shows whether a company's borrowing is excessive. The higher the ratio, the higher the financial risk.
Declining Industry ...
Debt/Equity Ratio
Calculations
The debt/equity ratio is calculated by dividing debt by owners' equity, where equity is, typically, the figure stated for the preceding calendar or fiscal year.
Debt/Equity ratio (D/E)
This measure of financial strength is calculated as a company's total debt divided by its total shareholders' equity. The lower the number, the better.
Deemed disposition ...
Net debt/equity ratio
Net interest-bearing liabilities divided by shareholders' equity.
Net interest-bearing liabilities
Interest-bearing liabilities reduced by liquid funds.
Debt/Equity Ratio
A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.
The Debt/Equity ratio is a measure of a company's reliance on debt, otherwise known as its financial leverage.
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.
Popular terms ...
D/E Ratio
(1) Debt/equity ratio.
(2) Ratio of bonds to stocks in a portfolio.
Earnings/Price Ratio (EPR)
Earnings-to-price ratio, where earnings equal net income for a company during a period. Same as the E/P ratio.
debt/equity ratio This ratio measures a company's financial leverage. It is riskier to invest... debtor An individual or company that owes money to another individual or company as...
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 captial markets.
DEBT/EQUITY RATIO -- Relationship of total debt of a company to its ordinary share capital.
There are no standard debt/equity ratios that need to be observed, but at some point, a firm that has too much interest expense will drain shareholder value. Debt is synonymous with financial risk; too much of it and any company will falter.
This is because as a company borrows more debt (and increases its Debt/Equity ratio), the risk of bankruptcy is even more higher.
Said to occur when a firm cannot service its debt even though its debt/equity ratio is not excessive.
Overdraft
Provision of instant credit by a lending institution.
Overcapitalization
Said to occur when a firm cannot service its debt even though its debt/equity ratio is not excessive.
Overdraft
Provision of instant credit by a lending institution.
Where:
BL is the firm's beta with leverage.
Tc is the corporate tax rate.
D/E is the company's debt/equity ratio.
Debt to equity (gearing) - Is a measure of the the risk of the capital structure of the firm. It shows amounts of capital contributed by creditors as compared to the amount contributed by owners. A low Debt/equity ratio may make it easier for a ...
The company funds its growth by investing in plant and equipment and working capital so that its asset base also grows at g, and debt/equity ratio is held constant, so that net worth grows at g.
A high ROE can be due to high earnings or low equity, therefore it is always wise to keep an eye on the company's leverage (as measured by its debt/equity ratio). ROE ratios for healthy companies range between 10 and 25 per cent.
 See also: Expense, Financial leverage, Capital structure, Stockholder Equity, Cost of capital
  
|
RSS
