Long-term debt-to-equity ratio

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 ?
We monitor our capital on the basis of our net debt-to-equity ratio and long-term debt-to-equity ratio.
The average long-term debt-to-equity ratio fell from .
In addition, Black & Decker posted a lower long-term debt-to-equity ratio.
The airline has set itself a long-term debt-to-equity ratio target of less than 50 per cent.
Other favorable factors include a very low long-term debt-to-equity ratio and an optimistic outlook for the remainder from fiscal 2004.
For consideration for The Globe 100 composite score ranking, a company must have been public at the end of 2002, reported positive net income in both 2001 and 2002, not reported a negative common shareholders' equity for two years, and have a long-term debt-to-equity ratio less than 4:1.
We had a net cash and cash equivalents balance after deduction of our total debt, and our long-term debt-to-equity ratio was 0.
To be considered one of the Globe's "Best of Massachusetts" a company must have been publicly traded at the end of 2001, have revenues of at least $10 million, have reported a net profit in both 2000 and 2001, and have a long-term debt-to-equity ratio of less than 4:1.
5 million during the quarter, its long-term debt-to-equity ratio now stands at 0.
SPI continued to maintain a strong financial position at the end of the quarter, with a long-term debt-to-equity ratio of 13 percent.
31, 1992, while the long-term debt-to-equity ratio was 23 percent at June 30, 1993.
Full browser ?