debt-to-equity ratio investment & finance definition
A company's total liabilities divided by stockholders' equity. The ratio shows how indebted a company is.
The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.
Total debt-to-equity ratio
Definition:
A capitalization ratio comparing current liabilities plus long-term debt to shareholders` equity. ...
Debt-to-equity ratio
A measure of financial leverage, the debt-to-equity ratio is calculated by dividing long-term debt by shareholders' equity.
Debt-to-Equity Ratio
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.
Debt-to-equity ratio
Calculated by dividing long-term debt by shareholders' equity. A measure of a company's leverage, this ratio shows the relationship between long-term funds provided by creditors and funds provided by shareholders.
Debt-to-equity ratio (D/E)
A company's debt-to-equity ratio (D/E) indicates the extent to which the company is leveraged, or financed by credit. A higher ratio is a sign of greater leverage.
Total Debt-to-Equity Ratio
A capitalization ratio calculated as current liabilities plus long-term debt divided by shareholders' equity.
Debt-to-equity ratio compares a company's total debt to shareholders' equity. Both of these numbers can be found on a company's balance sheet. To calculate debt-to-equity ratio, you divide a company's total liabilities by its shareholder equity, or ...
The Debt-to-Equity ratio and the Interest Coverage ratio are two basic measures of a company's financial condition. They're not the only considerations, but for the purposes of stock screening, they will suffice.
Long-term debt-to-equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
Long-term debt ratio
The ratio of long-term debt to total capitalization.
Also known as the debt-to-equity ratio and debt-to-worth ratio, the leverage ratio gives the investor a good indication of the company's leverage. For example, if the ratio is high, then assets far exceed stock equity.
debt-to-equity 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.) default: A term that denotes the failure to pay the principal or interest on a ...
30, Gammon held a cash balance of $107 million and carried a debt-to-equity ratio of just 3.7%.
And to make sure that none of the resulting names were loaded down with debt, I added one final criteria - a long-term debt-to-equity ratio of 50% or less.
This can include problems in the underlying business, a dividend payout ratio that is much too high and threatens future growth, or a debt-to-equity ratio that makes investors believe the company can't survive. And that is just the beginning! ...
The best known examples of gearing ratios include the debt-to-equity ratio (total debt / total equity), times interest earned (EBIT / total interest), equity ratio (equity / assets), and debt ratio (total debt / total assets).
When analyzing a company it is important to note their mix of debt and equity, because it gives a firm picture of the financial health of the company. The higher the company's debt-to-equity ratio the greater the risk of a potential investment.
Earnings will be better in good times, but worse in bad times, with an increased risk of financial distress. Look at a firm's debt-to-equity ration, interest coverage, ...
Basic financial and economic factors affecting the success of a company and the price of its stock. Fundamentals of a company would include factors such as earnings and revenue growth, price-earnings ratio, dividend yield and debt-to-equity ratio.
 See also: Equity ratio, Ratio, Share, Equity, Debt
  
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