Long-term debt-to-equity ratio

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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 ?
has significant negative relationship with long term debt to equity ratio.
has significant correlation with Long term debt to equity ratio.
SunOpta's long term debt to equity ratio is still very reasonable at .
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