debt to equity ratio


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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 ?
As a result of these restrictions, dividend payments and other distributions will be subject to an equity injection, or the issuance of other instruments treated as equity under IFRS or other agreed subordinated debt instruments sufficient for Ahlstrom to reduce its net debt to equity ratio by approximately 20 percentage points as calculated based on the company's balance sheet at the end of the first quarter of 2009, as well as sufficient cash flow.
This is likely in practice to impose, however subtly, a greater conservatism in loan structures and to put pressure on groups to accept the Revenue's informal "safe harbor" of a 1:1 debt to equity ratio.
An analysis of their financials revealed that they recorded a long-term debt to equity ratio of 1.
The company prefers to finance its operations by issuing stock rather than by incurring additional debt so as to reduce its debt to equity ratio and interest expense.
Since the debt to equity ratio is clearly in excess of 1.
Comparision of AMX, Telefonica, NII Holdings and Iusacell based on net revenue, net income, performance ratios, debt to equity ratio
The minimum net worth requirement has been reduced from $125 million to $110 million and the maximum debt to equity ratio has been increased from 3.
Use of the common stock sale proceeds to reduce debt will lower the debt to equity ratio to under 2.
We set out to achieve a more balanced debt to equity ratio with our balance sheet," said Kevin Benson, President and Chief Executive Officer of Laidlaw International, Inc.
This specific loan carries a debt to equity ratio of nearly 60 percent and a combined loan to value approaching 87 percent.
SunOpta's long term debt to equity ratio is still very reasonable at .
8 million mezzanine loan with a mezzanine debt to equity ratio of nearly 60 percent and a combined loan to value approaching 87 percent.