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 ?
In this paper we analyze the relationship between capital structure and firms performance and debt equity ratio has positive effect on return on asset return on equity and strong relationship between capital structure and firms performance.
Debt equity ratio Model Df Sum Mean F Significance square square F 1 Regression 1 592.
Such a trend was also deemed very strong evidence against debt in Henderson, (35) when "the debt equity ratio was high to start with .
Meshon further stated that the transaction will result in a 15-cent per share non-recurring increase in its fourth quarter earnings and funds from operations and will improve the debt equity ratio of the company's balance sheet.
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.
Also during the quarter," Laird continued, "The company repaid approximately $1,200,000 in debt thereby further strengthening its debt equity ratio while at the same time retiring roughly 80,000 shares of common stock under a previously announced stock buy back program.
The debt equity ratio improved during the year from 60 percent to 45 percent.
The financing would be from internal accruals with a debt equity ratio of around 1:1.
So we will be left with total debt including working capital of around Rs 1,300 crore or so, which will be less than 1:1 from the shareholders perspective in terms of debt equity ratio, he added.
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.
The funding of the project will be through debt equity ratio of 50:50.
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.