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Debt/Equity Ratio
(redirected from debt-equity ratio)

    Also found in: Hutchinson 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.
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The Company seeks to secure a robust balance sheet in fiscal 2009 by raising profitability and enhancing shareholders' equity to achieve a shareholders' equity ratio of 37% and a debt-equity ratio of 0.
Sumitomo Chemical Unveils New Three-Year Corporate Business Plan, ... by JCN Newswires
Section 163(j)(2)(C) defines the debt-equity ratio as "the ration which the total indebtedness of the corporation bears to the sum of its money and all other assets less such total indebtedness.
Debt or equity? New pathways - another dead end or the yellow brick ... by Salem, Irving / Tax Executive
7 Debt-equity ratio net of non-recourse loans((1)-(2))/(3)(%) [89.
Kenedix Reports Consolidated Interim Results; Revenue Increased 205%, ... by JCN Newswires
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