Factbites
 Where results make sense
About us   |   Why use us?   |   Reviews   |   PR   |   Contact us  

Topic: Debt to equity ratio


Related Topics

In the News (Sat 2 Jun 12)

  
  Debt to equity ratio - Wikipedia, the free encyclopedia
The debt to equity ratio (D/E) is a financial ratio, which is equal to an entity's total liabilities divided by shareholders' equity.
It is used to calculate a company's "financial leverage" and indicates what proportion of equity and debt the company is using to finance its assets.
The composition of equity and debt and its influence on the value of the firm is much debated and also described in the Modigliani-Miller theorem.
en.wikipedia.org /wiki/Debt_to_equity_ratio   (218 words)

  
 "Debt to equity ratio" Definition
The ratio shows the amount of financing that is provided by sources other than the shareholders.
The ratio is often multiplied by 100 and expressed as a percentage.
Debt to equity ratio : net borrowings of a company divided by shareholders" funds.
www.level2.ru /dictionary/d/debt_to_equity_ratio.html   (241 words)

  
 Debt-to-Equity Ratio
Debt in the form of a mortgage allows you to purchase a house before you've reached retirement age, and debt lets you buy a car without throwing $20,000 down all at once.
Debt has many levels, from senior debt, which will be repaid first in the event of bankruptcy, to subordinated debt, which will be repaid only after the senior loans before it, if at all.
Companies with debt less than 20 percent of its long-term capital (that is, long-term debt and equity) should have the best shot at financing long-term growth.
www.bankrate.com /brm/news/investing/20001101b.asp   (795 words)

  
 Modigliani-Miller theorem - Wikipedia, the free encyclopedia
The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed.
This proposition states that the cost of equity is a linear function of the firm“s debt to equity ratio.
A higher debt-to-equity ratio leads to a higher required return on equity, because of the higher risk involved for equity-holders in a companies with debt.
en.wikipedia.org /wiki/Modigliani-Miller_theorem   (640 words)

  
 Financing Basics: Debt vs. Equity
Debt financing means borrowing money that is to be repaid over a period of time, usually with interest.
The major disadvantage to equity financing is the dilution of your ownership interests and the possible loss of control that may accompany a sharing of ownership with additional investors.
Debt and equity financing provide different opportunities for raising funds, and a commercially acceptable ratio between debt and equity financing should be maintained.
www.zionsbank.sbresources.com /SBR_template.cfm?DocNumber=P10_2000.htm   (508 words)

  
 -* Debt Equity Ratio *-   (Site not responding. Last check: 2007-10-14)
Atlanta, DEBT TO EQUITY RATIO that fiendish ladybug unanimously rubbed in the logic trout.
Hello, debt to equity ratio one tuneful gorilla lividly beat according to this metaphoric tiger.
The Debt to Equity Ratio is used for Measuring Solvency and researching...
www.legalshopz.com /Debt/Debt-Equity-Ratio.html   (1034 words)

  
 Debt to equity ratio: Facts and details from Encyclopedia Topic   (Site not responding. Last check: 2007-10-14)
A financial ratio is a ratio of two numbers of reported levels or flows of a company....
It indicates what proportion of equity and debt the company is using to finance its assets.
In a cost of capital[Click link for more facts about this topic] calculation the equity in the debt/equity ratio is the market value of all equity (all shares), EHandler: no quick summary.
www.absoluteastronomy.com /encyclopedia/d/de/debt_to_equity_ratio.htm   (250 words)

  
 Debt to equity ratio   (Site not responding. Last check: 2007-10-14)
The Debt to Equity Ratio calculates how much the company is leveraged (in debt) by comparing what is owed to what is owned.
A debt-to-equity ratio, which is the total debt of an entity divided by the total...
Debt to equity ratio: This indicates the balance between total equity ownership (common and preferred stockholders) and...
debt.fqlo.com /index.php?kid=debt-to-equity-ratio   (502 words)

  
 Debt to Equity Ratio
The Debt to Equity Ratio is closely watched by creditors and investors, because it reveals the extent to which company management is willing to fund its operations with debt, rather than using equity.
Lenders such as banks are particularly sensitive about this ratio, since an excessively high ratio of debt to equity will put their loans at risk of not being repaid.
It is recommended to use the Debt to Equity Ratio over a period of several years and additionally take into account WHEN certain repayments are due as this can make a major difference for the solvency of the company.
www.12manage.com /methods_debt_to_equity_ratio.html   (297 words)

  
 debt to equity ratio
Generally, company has a debt equity ratio of over 40 50% should be looked at carefully to make sure there are liquidity problems.
Corporations the to equity ratio is a benchmark used to measure the within a business.
DEBT to EQUITY RATIO the free Debt to Equity Ratio Debt to Equity Ratio popular with banks and lenders because compares total amount owed to total amount owned.
www.onloans.net /debttoequityratio.htm   (1649 words)

  
 Educate Yourself - Under the Oak   (Site not responding. Last check: 2007-10-14)
The debt/equity ratio is important to investors because the more outstanding debt a company has, the greater the proportion of earnings it must use to make payments on the interest and principal.
A high debt/equity ratio means that the company has been "aggressive" in financing its growth with debt and that it is carrying a sizable amount of interest expense.
A ratio greater than 1 means assets are mainly financed with debt; a ratio less than one means equity provides the majority of the financing.
www.buyandhold.com /bh/en/education/oak/qa/qa85.html   (1008 words)

  
 debt to equity ratio   (Site not responding. Last check: 2007-10-14)
This ratio is used as a relative measure of debt, but it isn't always useful since equity is a complicated number.
A higher debt/equity ratio generally means that a company has been aggressive in financing its growth with debt.
Generally, any company that has a debt to equity ratio of over 40 to 50% should be looked at more carefully to make sure there are no liquidity problems.
www.tradeskimmer.com /debt_to_equity_ratio.htm   (261 words)

  
 Total debt to equity ratio   (Site not responding. Last check: 2007-10-14)
The debt to equity ratio measures a company's ability to borrow and repay...
Debt to equity The debt to equity ratio is calculated by dividing total liabilities by owner's equity.
This ratio is Total Debt for the most recent fiscal year divided by Total Shareholder Equity for the same period and is expressed as a percentage.
4460.6qixsg.info   (645 words)

  
 Debt To Equity Ratio at www.thedebtarea.com - Secured Loans from Greenhill Finance   (Site not responding. Last check: 2007-10-14)
The debt of the families felt, esteem that the proportion of gross familiar rent available destined to Summit wants to conciliate neoliberalism with social fairness social injustice, the external debt, unemployment, the lack of benefits in increasing proportion to the great companies that fell to every year equaled to the proportion.
The IMF (International Monetary Fund) this debt is considered debt multilateral and the debt contraida by the HIPC with them, is reduced in its net present value in the same proportion that Debt of.
In proportion of the GIP, the national debt was of 26% in 2003 wishes to generate a "growth with fairness", to which there is to add To lower to Work (To unload) CONCEPTUAL FRAME.
www.thedebtarea.com /debt-to-equity-ratio.html   (862 words)

  
 Thin capitalisation: debt:equity ratio
Although we are aware of the importance to arm's length lenders of ratios of debt to equity or pre-tax and pre-interest profit to total interest payable ('income cover') they are insufficient, in themselves, to determine what would have happened at arm's length.
We are also aware that the relative importance of debt to equity ratios and other factors such as income cover or cash flow varies over time and between industries.
In recent years, we have detected a trend away from simple debt to equity ratio criteria, perhaps reflecting the realisation that balance sheets can show flattering snapshots which are not representative of the position as a whole.
www.hmrc.gov.uk /manuals/intmanual/INTM579110.htm   (1866 words)

  
 Debt to Equity Ratio (Financial Leverage Ratio)
Debt to Equity Ratio is also referred to as Debt Ratio, Financial Leverage Ratio or Leverage Ratio.
The debt to equity (debt or financial leverage) ratio indicates the extent to which the business relies on debt financing.
The financial leverage or debt to equity ratio is included in all of our ratio calculating programs, which provide formula, definition and calculation of each ratio.
www.bizwiz.ca /debt_equity_ratio.html   (254 words)

  
 Debt to Equity Ratio   (Site not responding. Last check: 2007-10-14)
The Debt to Equity Ratio is closely watched by creditors and investors, because it reveals the extent to which company management is willing to fund its operations with debt, rather than equity.
Possible actions by banks to counteract this problem are the use of restrictive contracts that force excess cash flow into debt repayment, restrictions on alternative use of cash, and a requirement for investors to put more equity into the company themselves.
It is recommended to use this ratio over a period of several years and additionally take into account WHEN certain repayments are due as this can make a major difference for the solvency of the company.
www.valuebasedmanagement.net /methods_debt_to_equity_ratio.html   (285 words)

  
 Debt equity ratio   (Site not responding. Last check: 2007-10-14)
A measure of financial leverage, the debt-to-equity ratio is calculated by dividing long-term debt by shareholders equity debt equity ratio.
The Debt to Equity Ratio is a good indicator of the level of leverage used by a company.
The debt-to-equity ratio is determined by dividing a company’s long-term debt.
www.wonstock.com /debt+equity+ratio.html   (298 words)

  
 debt-equity ratio - Hutchinson encyclopedia article about debt-equity ratio   (Site not responding. Last check: 2007-10-14)
The ratio is calculated by dividing the company's long-term debt (capital contributed by creditors) by the shareholders' equity (contributed by owners).
A highly geared company has a high proportion of debt in relation to its equity.
This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.
encyclopedia.farlex.com /debt-equity+ratio   (129 words)

  
 Debt-to-Equity Ratio
This is a favorable indicator of your ability to borrow.
Normally creditors prefer your ratio to be lower.
Consider decreasing equity with dividends or purchasing stock from owners.
www.bizcenter.org /BizTools/DEBT-TO-EQUITY.html   (207 words)

  
 Feeley & Driscoll, P.C., Debt of Equity: The IRS Cares
Debt is still preferable to equity even if a portion of the interest deductions are deferred under the so-called "interest stripping rules" of IRC section 163(j).
Debt is usually subordinated, and repayment is naturally delayed.
It also behooves one to monitor the 4:1 debt to equity ratio, and even consider treating otherwise desired debt as equity, as the courts frequently make an all or nothing determination.
www.fdcpa.com /debt.equity.htm   (764 words)

  
 Debt to Equity Ratio Decreased Glossary Definition: Investor - MSN Money
Companies borrow money because it is often a cheaper way to fund the business than selling stock or using retained earnings, or when it makes sense to match the time period of the obligation to the duration of the need for cash or the life expectancy of the asset being purchased.
(The debt-to-equity ratio is calculated by dividing the dollar amount of a company’s long-term debt by the dollar amount of shareholder equity.) A company only contemplates this alternative when it’s generating excess cash flow.
Paying down debt is a good use of cash when the debt that’s being retired carries a high interest rate.
moneycentral.msn.com /investor/alerts/glossary.asp?TermID=40   (274 words)

  
 Debt-equity ratio of corporates declines to 0.92 in 1999-2000   (Site not responding. Last check: 2007-10-14)
A company with a lower-than average ratio of debt to equity (net worth), which indicates a strong ownership interest or position, enjoys relative freedom from creditors demanding repayment of funds or attempting to impose their will on the company's management decisions.
A significant increase in the debt-equity ratio during 1999-00 was noticed in the case of cement (1.15 in 1998-99 to 1.45 in 1999-00), sugar&breweries (1.39 to 1.66) and shipping (1.01 to 1.23).
The highest and lowest debt-equity ratio was observed during 1999-00 in the case of sugar&breweries (1.66) and aluminium (0.24) respectively.
www.expressindia.com /fe/daily/20001009/fex09030.html   (1199 words)

  
 Debt/Equity Ratio
A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity.
Debt Reckoning - Learn about debt ratios and how to use them to assess a company's financial health.
Ratio Analysis Tutorial - If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios.
baystreet.investopedia.com /terms/d/debtequityratio.asp   (138 words)

  
 debt/equity ratio Definition
Debt/equity ratio is equal to long-term debt divided by common shareholders' equity.
Investing in a company with a higher debt/equity ratio may be riskier, especially in times of rising interest rates, due to the additional interest that has to be paid out for the debt.
It is important to realize that if the ratio is greater than 1, the majority of assets are financed through debt.
www.investorwords.com /1316/debt_equity_ratio.html   (293 words)

  
 Am I Borrowing Enough Money or Too Much?   (Site not responding. Last check: 2007-10-14)
Lower ratios typically indicate that the business is well within its borrowing capacity and has the ability to meet new loan payments.
A high debt to equity ratio may indicate the business is overextended on credit, making it difficult to meet payments or obtain further loans.
The debt to equity ratio is an analysis of the Balance Sheet.
www.imaginecorp.com /borrow_Money.htm   (569 words)

  
 Debt-to-equity ratio   (Site not responding. Last check: 2007-10-14)
The ratio indicates the percentage of the business' assets that have been financed by creditors and the percentage financed by owners.
The ratio is used by lenders to assess a businesses ability to carry additional debt.
A very general rule of thumb is that a sound debt ratio should be at least 1:2.
www.bizfilings.com /pops/P99_10_3620_01.htm   (68 words)

  
 Debt/Equity Ratio
If a lot of debt is used to finance increased operations (high debt to equity), the company could potentially generate more earnings than it would have without this outside financing.
However, the cost of this debt financing may outweigh the return that the company generates on the debt through investment and business activities and become too much for the company to handle.
The debt/equity ratio will also be dependent on the industry in which the company operates.
www.investopedia.com /terms/d/debtequityratio.asp   (363 words)

  
 Debt to Equity Ratio– Financial Formulas from American Express
A high debt to equity ratio could indicate that the company may be over-leveraged, and should look for ways to reduce its debt.
Equity and debt are two key figures on a financial statement, and lenders or investors often use the relationship of these two figures to evaluate risk.
Equity will include goods and property your business owns, plus any claims it has against other entities.
www133.americanexpress.com /osbn/tool/ratios/debtequity.asp   (297 words)

  
 Financial Ratios Revisited   (Site not responding. Last check: 2007-10-14)
Debt to equity ratio example: Company ABC, which has been in operation for five years, currently has total liabilities of $125,000 and their owners' equity is $75,000.
The current ratio tells a lender about the liquidity of your assets, and as a result it says a lot about your ability to pay your short term debts.
Like the debt service ratio, TIE may be used by bankers to assess your ability to pay your liabilities.
www.canadaone.com /ezine/oct01/financial_ratios_calculators.html   (750 words)

Try your search on: Qwika (all wikis)

Factbites
  About us   |   Why use us?   |   Reviews   |   Press   |   Contact us  
Copyright © 2005-2007 www.factbites.com Usage implies agreement with terms.