Long-term debt-to-equity ratio

(redirected from Long-Term Debt to Equity Ratio)

Long-term debt-to-equity ratio

Long-Term Debt-to-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 total value of its preferred and common stock. Put graphically:

Ratio = Long-term debt / (Preferred stock + 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.
References in periodicals archive ?
The company's long-term debt to equity ratio increased to 23.
7 million and our long-term debt to equity ratio is a conservative .
An analysis of their financials revealed that they recorded a long-term debt to equity ratio of 1.
The interest bearing long-term debt to equity ratio dropped by nearly half to 16% for 2003 from the 2002 ratio of 29%.
However, unlike Verizon, SBC has a significantly lower long-term debt to equity ratio.
The net reductions have helped reduce the company's long-term debt to equity ratio to below one to one.
4 times current liabilities and long-term debt to equity ratio was 26%.
71 Long-term debt to equity ratio 28% 6% Shares issued and outstanding 1,309,411 1,296,684 Working capital $ 4,800,831 $ 2,708,906 Retained earnings $ 2,893,032 $ 2,140,618
6:1, a long-term debt to equity ratio of 09:1 and shareholders' equity of $20.
89 Long-term debt to equity ratio 29% 6% Shares outstanding 1,302,627 1,273,909 Working capital $ 4,967,540 $3,723,653 Retained earnings $ 2,730,991 $1,872,897 -0- 7/23/96
As at March 26, 1995, the long-term debt to equity ratio stood at 0.
82 Long-term debt to equity ratio 29% 6% Shares outstanding 1,297,095 1,251,592 Working capital $ 5,258,637 $3,534,796 Retained earnings $ 2,546,694 $1,847,758 -0- 5/1/96
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