debt to equity ratio

(redirected from Debt equity ratio)

Debt/Equity Ratio

In risk analysis, a way to determine a company's leverage. The ratio is calculated by taking the company's long-term debt and dividing it by the value of its common stock. Put graphically:

Debt/equity ratio = Long-term debt / Common stock

The greater a company's leverage, the higher the ratio. Generally, companies with higher ratios are thought to be more risky because they have more liabilities and less equity. See also: Long-Term Debt/Capitalization Ratio.

debt to equity ratio

See debt/equity ratio.
References in periodicals archive ?
Rao (1984) have studied the financial statement of twenty companies belonging to chemical industry of Indian corporate sector for the year 1980 to observe the impact of profitability on the debt equity ratio in sample firms.
further; the data is analyzed with the help of various financial parameters such as gross profit margin, net profit margin, operating profit margin, return on capital employed, return on equity, and debt equity ratio.
However, the company's high project debt equity ratio, its foray into the hospital business and growing competition in the healthcare sector constrain the rating.
Debt equity ratio Model Df Sum Mean F Significance square square F 1 Regression 1 592.
The variables used include average R&D expenditure, profitability, average sales, average growth rate and debt equity ratio.
Such a trend was also deemed very strong evidence against debt in Henderson, (35) when "the debt equity ratio was high to start with .
The debt equity ratio improved during the year from 60 percent to 45 percent.
The funding of the project will be through debt equity ratio of 50:50.
The rating factors in the firm's long experience and proven project execution capability, healthy order book and solid customer base, comfortable debt equity ratio and strong business potential of construction industry, CARE noted.
This plant is also part of Adani Group~s plan to have a power generation capacity of 20,000 MW by 2020 and will be funded through a debt equity ratio of 70:30.
JCR will also watch its financial strategy including its treatment of its treasury shares, although JCR is not so much concerned about its financial condition measured by financial indicators including its net debt equity ratio.
The financing would be from internal accruals with a debt equity ratio of around 1:1.