Debt to Equity
|
| ||
| This old standard is commonly used to get a feel for indebtedness, particularly in comparison with the rest of an industry. How to calculate debt to equity? The calculation is simple: Total long-term debt divided by equity. |
||
|
Additional Comments:
As a consumer, you know such a debt to equity ratio well below 1 percent is healthy, and so it is for most businesses too. Debt-free companies - just like debt-free consumers - come out ahead more often.
|
Related Terms: | ||
Common Stock Ratio The percentage that common stockholders' equity reduced by intangible assets bears to total tangible capitalization (the ... Financial Leverage Financial leverage relates a company's long-term debt and preferred stock to the company's common equity. ... Note A short-term debt instrument. They normally mature in or less than five years. ... | ||
« View the Stock Market Dictionary »
Latest Financial Advice
Free Investment Advice
| Get free stock market tips and investing advice by subscribing to our newsletter: |
* Your information will not be shared or sold. |
Recommended Reading
Categories
- Trading Basics
- Investing 101
- Investing Essentials
- Understanding the Risks
- Beginning to Trade
- Trading Strategies
- Trading Psychology
- Retirement Investing
- Personal Finance
- Advanced Trading
- Penny Stocks
- FOREX Trading
- Commodity Futures
- Stock Tips
- Going Public
- Real Estate
- Research Tools
- Stock Spam
- Reviews
- Stock Market Dictionary
RSS