Printer Friendly
The Free Dictionary
1,036,555,579 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Debt/Equity Ratio
(redirected from Debt equity ratio)

    Also found in: Wikipedia 0.04 sec.
Debt/Equity Ratio
A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets.

Note: Sometimes investors only use interest bearing long-term debt instead of total liabilities.



Notes:
A higher debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

Debt/equity ratio
Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long-term debt by common stockholder equity.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
Such a trend was also deemed very strong evidence against debt in Henderson, (35) when "the debt equity ratio was high to start with .
Planning techniques to avoid the reclassification of shareholder debt ... by Burilovich, Linda / The Tax Adviser
As of December 31st, 2004, the company had an equity of more than EUR 198 M with a net debt equity ratio of 0.
Oberthur Card Systems' 2004 Full Year Results Show Strong Growth and ... by Business Wire
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.
Kramont Reports Receipt of $27.5 Million Mortgage Prepayment by Business Wire
More results
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.. Terms of Use.