debt to equity ratio


Also found in: Wikipedia.

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 ?
This study includes Debt to Equity ratio (DE), Debt to Total Asset ratio (DTA) and Gearing ratio (GR) to represent the capital structure, whereas, the profitability of firms was measured by Return on Capital Employed (ROCE) and Return on Assets (ROA).
The plant was constructed on EPC basis at a total cost of $110.2 million with debt to equity ratio of 80:20.
"The Bahrain LNG project is financed through a combination of debt and equity on a 75:25 debt to equity ratio. There have been discussions about potentially connecting to the gas grids of GCC countries," Shaikh Mohammed said.
In the June 2018 quarter, net of cash debt to equity ratio was 66.5%, down 2.6% from March 2018 and down 4.0% from June 2017.
And the cabinet was summarized the total equity injection wasn't transferrable to ordinary shares because of the government's policy and National Electric Power Regulatory Authority's order for 70:30 debt to equity ratio in power projects.
Its debt to equity ratio remains robust at 1.43x, while assets-to-equity ratio posted at 2.43 times,' company President Jose D.
The net debt to equity ratio remained low at 11.8% as of December 31, 2017.
He informed that the coal mining project cost was US $845 million which would be on the basis of 75:25 Debt to Equity Ratio and would consist of 31.5 per cent foreign and 68.5 per cent local debt.
Additionally, the debt to equity ratio has been declining during the last quarters to 15.4 in Q3 2015.
DAMAC continues to maintain a healthy net cash position of AED5.74 billion ($1.56 billion) and gross debt to equity ratio stands at 0.38 as at Dec.
The total debt decreased to $43.7 million, improving the debt to equity ratio to 0.09:1, compared to $405.4 million on June 30 when it was 4.38:1.
As of 30 June 2015, the Group's debt to equity ratio stood at only 0.24 underscoring the strength of GFH's balance sheet.