Long-term debt-to-equity ratio

A capitalization ratio comparing long-term debt to shareholders' equity.

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

As a result, its long-term debt-to-equity ratio significantly declined to 44.1% at end-2016, from 118.6% at end-2012.

Fitch Affirms CPSCL at 'AA-(tun)'; Stable Outlook

The rating is however underpinned by the experience and long track record of the promoters, location of the plant in aquaculture zone, approvals from the US Food and Drugs Administration, European Union and British Retail Consortium, which helps in sale to lucrative western markets and almost nil long-term debt-to-equity ratio.

-Bluepark Seafoods long-term debts get BB rating from CARE

The average long-term debt-to-equity ratio fell from .87 to .78 in 2003.

However, a long-term debt-to-equity ratio of .78 is still relatively high compared to the ratio between .5 and .6 recorded from 1999 to 2001.

Due to a reorganization of one cooperative, the fruit/vegetable group saw its average long-term debt-to-equity ratio decline from 2.74 to .65.

Measuring top 100 co-op performance

In addition, Black & Decker posted a lower long-term debt-to-equity ratio.

SUPPLIERS' FINANCIAL RESULTS IMPROVE IN Q3

The airline has set itself a long-term debt-to-equity ratio target of less than 50 per cent.

SAS plans action to shoot down losses

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