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| | Glossary |
 | | Long-term debt-equity is the ratio of a company's long-term liabilities (debt that won't be paid off in one year) to its equity. | | | Debt in and of itself is not "bad," but since it requires the timely payout of interest to debt holders, it is important to analyze a company within the context of the likeliness that it will have adequate resources to meet its payments in the coming business and economic environment. | | | The ratio of a company's liabilities to its equity (total value of stock). |
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http://www.quicken.com/glossary/notemplates/content/?deratio
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| | Debt equity ratio |
| | The debt to equity ratio indicates the percentage of the business' assets that have been financed by creditors and the percentage financed by owners. | | | A measure of financial leverage, the debt-to-equity ratio is calculated by dividing long-term debt by shareholders equity. | | | This ratio is Total Debt for the most recent fiscal year divided by Total Shareholder Equity for the same period and is... |
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http://www.selfdiscount.com/debt+equity+ratio.html
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| | Fiducial We help your business grow and be profitable. Accounting Services, Tax Services, Small Business Information |
| | Debt and equity financing provide different opportunities for raising funds, and a commercially acceptable ratio between debt and equity financing should be maintained. | | | Debt financing means borrowing money that is to be repaid over a period of time, usually with interest. | | | From the lender's perspective, the debt-to-equity ratio measures the amount of available assets or "cushion" available for repayment of a debt in the case of default. |
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http://www.fiducial.com/learning_centers/sbc/text/P10_2000.asp
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| | Entrepreneurs Reading Room |
| | The debt to equity ratio compares the amount invested in the business by creditors with that invested by the owner(s). | | | A ratio greater than one means the firm is using more debt than equity to finance investments. | | | If the debt to equity ratio trend is up, it is unfavorable. |
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http://www.vpspro.com/reading_room.html?step=2002
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| | Modigliani-Miller theorem - Wikipedia, the free encyclopedia |
| | This proposition states that the cost of equity is a linear function of the firm´s debt to equity ratio. | | | is the cost of capital for an all equity firm. | | | 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. |
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http://en.wikipedia.org/wiki/Modigliani-Miller_theorem
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| | Small Business Calculators: Debt to assets ratio |
| | The debt to assets ratio reveals the extent to which a company is financed with debt. | | | A 78 percent debt to assets ratio means that your creditors have supplied about 78 cents of every dollar of your company's assets. | | | Companies with a high debt to assets ratio may have trouble borrowing any more money or may have to pay a higher interest rate on a loan than it would if its ratio were lower. |
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http://www.bankrate.com/brm/news/biz/bizcalcs/ratiodebt.asp
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| | Educate Yourself - Under the Oak |
| | 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. | | | 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. | | | It indicates what portion or percentage of equity and what portion or percentage of debt the company is using to finance its business. |
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http://www.buyandhold.com/bh/en/education/oak/qa/qa85.html
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| | 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. | | | The Debt to Equity Ratio is used for Measuring Solvency and researching the Capital Structure of a company. | | | 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. |
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http://www.12manage.com/methods_debt_to_equity_ratio.html
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| | debt to equity ratio - Debt Help |
| | Debt consolidation loans consist of a loan that is equal to the either the total amount of your outstanding debt or to a significant portion of it, and allow you to pay off that debt so that you have only a single debt remaining
the loan itself. | | | These loans are designed with the person in debt beyond their means in mind, allowing for repayment of the outstanding debts while combining multiple payments into a single affordable monthly payment.Debt consolidation loans can be applied for at most banks or lending institutions, with some even specializing in debt relief and consolidation. | | | Collateral and considerations Since applying for debt consolidation loans means that you have some amount of debts that you wish to consolidate, there's a good chance that your credit is less than perfect. |
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http://www.debtnegotiable.com/debt/debt-to-equity-ratio.html
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| | Debt vs. Equity ? |
| | Debt and equity financing should not be seen as substitutes for each other. | | | First, it is necessary to understand the differences between debt and equity financing. | | | If the after-tax cost of debt is lower than the company's Net Return On Assets you should take on as much debt as you can. |
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http://www.dynamic-equity.com/vcmag03.htm
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| | Debt-to-Equity Ratio |
| | 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. | | | 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. | | | 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. |
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http://www.bankrate.com/brm/news/investing/20001101b.asp
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| | debt/equity ratio Definition |
| | Debt/equity ratio is equal to long-term debt divided by common shareholders' equity. | | | For example, if a company has long-term debt of $3,000 and shareholder's equity of $12,000, then the debt/equity ratio would be 3000 divided by 12000 = 0.25. | | | 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. |
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http://www.investorwords.com/1316/debt_equity_ratio.html
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| | 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). | | | whether the foreign company's funding of the U.S. entity is debt or equity. | | | Distinguishing debt from equity is subjective at best, especially between related parties. |
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http://www.fdcpa.com/debt.equity.htm
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| | Debt-Equity Ratio - Definition |
| | This is the ratio of the company's liabilities to its equity (total value of all the stock). | | | Otherwise, it means they might default on paying their debt. | | | A company with a high debt-equity ratio is one that has a considerable amount of debt. |
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http://www.teenanalyst.com/glossary/d/debtequity.html
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| | Financial Ratios Revisited |
| | 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. | | | Like the debt service ratio, TIE may be used by bankers to assess your ability to pay your liabilities. | | | To calculate your debt to equity ratio, you divide your total liabilities by the owner's equity: |
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http://www.canadaone.com/ezine/oct01/financial_ratios_calculators.html
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| | Ratio - Debt-Equity Ratio |
| | Indicates what proportion of equity and debt that the company is using to finance its assets. | | | A ratio greater than one means assets are mainly financed with debt, less than one means equity provides a majority of the financing. | | | A low ratio of 0.26 means that the company is exposing itself to a large amount of equity. |
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http://www.investopedia.com/university/ratios/debtequity.asp
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| | Debt to Equity Ratio |
| | The equity of the ordinary shareholders is in effect the net tangible assets. | | | For example a company that has debts of $2,000,000 but an equity of $1,000,000 has a debt/equity ratio if 200% or in other words it owes twice as much as it actually has in assets. | | | The purpose of the ratio is to show how much of the company (if anything) that the shareholders actually own. |
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http://www.triggerpoint.com.au/debt.html
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| | Debt/Equity Ratio |
| | A high debt/equity ratio generally means a company has been aggressive in financing its growth with debt. | | | It indicates what proportion of equity and debt the company is using to finance its assets. | | | 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. |
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http://www.investopedia.com/terms/d/debtequityratio.asp
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| | Debt-equity ratio of corporates declines to 0.92 in 1999-2000 |
| | Debt includes all the long-term loans, which include all-term loans, installment credit, long-term borrowings from government agencies and financial institutions, borrowings against debentures, deferred payment liabilities and other transactions. | | | 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. | | | The debt-equity ratio of 320 major private sector companies decreased from 1.01 during 1998-99 to 0.92 during 1999-00. |
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http://www.expressindia.com/fe/daily/20001009/fex09030.html
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| | debt ratio Definition |
| | However, when a company chooses to forgo debt and rely largely on equity, they are also giving up the tax reduction effect of interest payments. | | | In general, the lower the company's reliance on debt for asset formation, the less risky the company is since excessive debt can lead to a very heavy interest and principal repayment burden. | | | When calculating this ratio, it is conventional to consider both current and non-current debt and assets. |
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http://www.investorwords.com/1326/debt_ratio.html
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| | Debt to Equity Ratio (Financial Leverage Ratio) |
| | The debt to equity (debt or financial leverage) ratio indicates the extent to which the business relies on debt financing. | | | Upper acceptable limit of the debt to equity (debt or financial leverage) ratio is usually 2:1, with no more than one-third of debt in long term. | | | The debt to equity ratio is listed in our profitability ratios. |
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http://www.bizwiz.ca/debt_equity_ratio.html
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| | Debt-to-equity ratio |
| | A measure of a company's gearing (borrowing) which is calculated by dividing all financial debt by shareholders' funds (equity). |
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http://www.anz.com/edna/dictionary.asp?action=content&content=debt-to-equity_ratio
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| | Debt to Equity Ratio– Financial Formulas from American Express |
| | 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. | | | A high debt to equity ratio could indicate that the company may be over-leveraged, and should look for ways to reduce its debt. | | | The ratio of your business' equity to its long-term debt provides a window into how strong its finances are. |
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http://home3.americanexpress.com/smallbusiness/tool/ratios/debtequity.asp
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| | A Andrew Harrison CPA PC Certified Public Accountant |
| | A company’s ability to cover its total debt with current operating cash flow is measured by the operating cash flow to total debt ratio. | | | The current ratio is total current assets divided by total current liabilities (It measures liquidity). | | | The higher the ratio is, the more successful the firm has been in generating a return on the assets invested in the firm. |
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http://www.aandrewharrisoncpa.com/Action/Financials/Ratios.htm
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| | Debt Reckoning |
| | These include the debt ratio, the current ratio, interest coverage, etc. Together they vividly show how the amount of debt leverage can vary between healthy firms with low debt levels and plenty of cash to service it and troubled companies that are heavily leveraged and cash-poor. | | | We can interpret a debt-equity ratio of 0.5 as saying that the company is using $0.50 of liabilities in addition to each $1 of shareholders' equity in the business. | | | Notice that this ratio uses all liabilities (short-term and long-term), and all owner's equity (both invested capital and retained earnings). |
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http://www.investopedia.com/articles/fundamental/03/042303.asp
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| | calculation debt equity ratio |
| | … A Debt to Equity Ratio Calculation is fairly simple: Divide Total Debt (= Total Liabilities) by Total Equity. | | | a) Debt equity ratio Measures the direct proportion of debt to equity capital. | | | … Debt to Income Ratio Sample debt to income ratio calculation: Gross monthly household income: $5 000. |
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http://maritimebiodiesel.ca/calculation-debt-equity-ratio.html
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| | The Telegraph - Calcutta : Business |
| | They had calculated the debt burden based on a formula saying that a sustainable burden should be five to six times of the earnings before depreciation, interest and tax (EBDIT). | | | The corporate debt restructuring cell has rejected the company’s proposal to bring down the interest rate to 8 per cent and writing-off some of the loans. | | | The official felt that an infusion of fresh funds is important for completion of the debt restructuring exercise by January 22. |
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http://www.telegraphindia.com/1031201/asp/business/story_2630468.asp
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| | Right on the Money Web Extra: Researching a Stock |
| | One time-honored measure is the debt-to-equity ratio: You get it by dividing long-term liabilities by shareholder equity, figures you can find on the balance sheet in an annual report. | | | In recent years, the debt-to-equity ratio of the Standard & Poor's 500 index is.75, which is a good indicator for the market overall. | | | But sometimes investors choose to buy companies with high P/E ratios, generally when they are hopeful -- or even starry-eyed -- about the ability of a company to deliver remarkable earnings in the future. |
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http://www.rightonthemoney.org/shows/509_share/webextra_stock.html
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| | MSN Money - Debt to Equity Ratio Decreased Glossary Definition: Investor |
| | (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. | | | 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. |
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http://moneycentral.msn.com/investor/alerts/glossary.asp?TermID=40
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| | Debt/Equity Ratio |
| | Debt/Equity Ratio is total long-term debt divided by shareholders' equity (assets | | | This ratio helps investors measure the amount of debt a company |
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http://www.hoovers.com/global/help/hol/stand_alone/stockscreener/debtequityratio.html
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| | debt-equity ratio, debt ratio |
| | These ratios are used by lenders in the process of determining debt worthiness, and are studied by investors seeking to judge the investment value of a company or venture. | | | For example, a debt of $100 combined with total assets (cash-value assets owned free and clear) of $100 produces a debt-equity ratio of 50/50. | | | Debt-equity ratio is only of real interest when it is compared with other financial figures related to a company. |
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http://energyvortex.com/energydictionary/debt_equity_ratio__debt_ratio.html
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| | Financial info - Key financial ratios and definitions |
| | Shareholders’ equity as a percentage of total assets, including Customer Finance operations, on each respective balance sheet date. | | | Short- and long-term borrowings (excluding pension liabilities and net debt in Customer Finance operations) less liquid assets, divided by shareholders’ equity. | | | Net income as a percentage of shareholders’ equity. |
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http://www.annualreport.scania.com/financialinfo_financialdata.asp
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| | Irrational Ratios |
| | Particularly revealing are the current ratio and the debt to equity and return on equity ratios. | | | The current ratio shows a company with no cash in 1986 despite record “revenues.” The 1986 debt to equity ratio is up 8600% from the prior year; return on equity has dropped by more than 75%. | | | This sales index (or ratio) measures whether receivables and revenues are in or out of balance in two consecutive reporting periods. |
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http://www.aicpa.org/pubs/jofa/aug2001/wells.htm
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| | CCH Business Owner's Toolkit Debt to Equity |
| | A rising debt-to-equity ratio may signal that further increases in debt caused by purchases of inventory or fixed assets should be restrained. | | | Improving this ratio involves either paying off debt or increasing the amount of earnings retained in the business until after the balance sheet date. | | | As another example, you might think about repaying revolving debt (such as a line of credit) before the balance sheet date and borrowing again after the balance sheet date. |
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http://www.toolkit.cch.com/text/P06_7305.asp
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| | Business Week Online: Personal Investing |
| | Definition: Debt-to-Equity Ratio is a company's total long-term debt expressed as a percentage of shareholders' equity. | | | NOTE: Companies with fixed interest rates on their debt may not be impacted at all by short-term swings in interest rates. | | | If you expect interest rates to rise significantly, select the industries that would be most affected negatively (housing, for example); then search those industries using debt-to-equity ratio in the high relative mode to find companies which would be impacted the most. |
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http://prosearch.businessweek.com/businessweek/GENERAL_FREE_SEARCH.html?Button=Description&CRITERIA=037
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| | Amazon.com: That 'just right' debt-to-equity ratio. : An article from: Management Quarterly [HTML]: e-Books & Docs |
| | A debt-to-equity ratio, which is the total debt of an entity divided by the total equity of that entity, is a measure of the use of leverage or a measure of risk. | | | It is therefore imperative that the cooperative and its members understand the costs of debt and equity financing and how leverage works for them. | | | A cooperative with a high enough level of leverage is best able to borrow money from others at an agreed-upon interest rate and invest that money in a project that rakes in a return that is greater than the interest rate. |
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http://www.amazon.com/exec/obidos/tg/detail/-/B00092SV8W?v=glance
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| | SBA - Financing Basics |
| | There are two types of financing: equity and debt financing. | | | Relinquishing some of the decision-making and some of the potential for profits are the main disadvantages of equity financing. | | | In addition to equity considerations, lenders commonly require the borrower's personal guarantees in case of default. |
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http://www.sba.gov/starting_business/financing/basics.html
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| | Debt-to-equity ratio- BDC |
| | Because this ratio is a good indicator of a business's capacity to repay its creditors, it is considered very important by most term lenders. | | | This ratio indicates the amount of liabilities the business has for every dollar of shareholders' equity. | | | Measures management's reliance on creditor financing as well as the business's indebtedness compared to the amount invested by its owners. |
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http://www.bdc.ca/en/business_tools/calculators/debtequityration.htm
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| | Planning a Business Financing Your Business [Debt-to-Equity Ratio] |
| | Lenders are more willing to finance a business that has a higher equity as it shows the amount of available assets to repay a debt in the event of default. | | | The debt-to-equity ratio is an indication of the business' ability to raise funds. | | | However, a low debt-to-equity ratio may also mean that the funds invested are under capitalised. |
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http://www.business.gov.sg/plan/fin-biz-d2er.htm
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| | The Hindu Business Line : Jindal Iron, Vijaynagar unveil three-layer amalgamation deal |
| | The CRPS will be converted into equity shares of Rs 10 each in the ratio of one equity share for every four CRPS held by the shareholders resulting in allotment of 12.91 crore shares. | | | The company plans to bring down debt by Rs 500 crore this year and has a three-year target to bring its debt equity ratio of 5:1 to lower than 2. | | | The merged entity will have an outstanding debt of Rs 4,750 crore as on March 2004. |
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http://www.thehindubusinessline.com/2003/11/14/stories/2003111402960100.htm
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| | Calculation Debt Equity Ratio |
| | Consolidate your debts, lower your credit card bills by 50% and all other monthly bills. | | | Debt Ratio - Cut Your Debt By 50% | | | We can help you regain control over your finances and avoid bankruptcy by consolidating debts and loan payments. |
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http://www.onesolution.org.uk/debt/calculation_debt_equity_ratio.html
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| | Ratio calculators- BDC |
| | They are used to measure the relationship between 2 or more components of the financial statements and have greater meaning when the results are compared to industry standards for businesses of similar size and activity. | | | Each ratio informs you about factors such as the earning power, solvency, efficiency, and debt load of your business. | | | Leverage ratios: examine how assets of the business are financed |
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http://www.bdc.ca/en/business_tools/calculators/overview.htm
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| | Welcome to debtcrunchers.com - new customer form |
| | Eliminating your debt helps to improve your credit rating, and fico score allowing you to enjoy lower interest rates. | | | Have the ability to invest in your financial security and future with the extra money you will have after settling your debt. | | | Set up a monthly payment you can live with and be completely debt-free in 12-30 months regardless of your debt amount. |
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http://www.bhrigging.com/Debt-Equity-Ratio.htm
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| | A Year for New Bargains [Fool.com: Commentary] January 31, 2006 |
| | For a small company, equity is the most appealing currency because it essentially comes at no cost. | | | In addition, acquisitions must be paid for -- either with equity, cash on hand, or debt. | | | Infocrossing, however, has relied much more heavily on cash and debt to finance its acquisitions. |
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http://www.fool.com/news/commentary/2006/commentary06013109.htm?ref=foolwatch
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| | India Inc slowly breaking free from debt grip- The Economic Times |
| | The debt-equity ratio is calculated by dividing the total debt by net worth. | | | Moreover, secured loans as a percentage of total liabilities are also on the decline. | | | On the other hand, a high debt-to- equity ratio can provide increased returns at the cost of safety. |
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http://economictimes.indiatimes.com/articleshow/826510.cms
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| | Debt to Equity ratios - corporations |
| | The debt to equity ratio is a common benchmark used to measure the leverage within a business. | | | The following table is a summary of national debt to equity ratios computed by BizStats based on recently available data compiled from approximately 4.8 million U.S. corporate federal income tax returns. | | | Accordingly, these ratios should be viewed in context of the accounting methods predominantly used within the industry. |
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http://www.bizstats.com/corpdecurrent.htm
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| | The Hindu Business Line : Tata Tea (GB)'s debt-equity ratio gets lowered |
| | As a result of this round of debt restructuring, the residual debt out of the first restructuring is fully paid off and replaced by a "fresh and cost effective debt." | | | The entire debt facility is for a term of five years. | | | As a result of this debt restructuring, Tata Tea would be saving around £2.75 million (Rs 23 crore) on its annual interest payout. |
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http://www.thehindubusinessline.com/2005/03/10/stories/2005031001800300.htm
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