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ADVFN HomeHelpFinancialsDeeper AnalysisFINANCIAL RATIOS - Leverage RatiosDebt-to-Equity Ratio
FINANCIAL RATIOS - Leverage Ratios
  Debt Ratio
  Debt-to-Equity Ratio
  Debt-to-Equity Ratio (excl. Intangibles)
  Debt-to-Equity Market Value
  Net Gearing
  Net Gearing (excl. Intangibles)
  Gross Gearing (excl. Intangibles)
  Gearing Under 1 Year
  Gearing Under 1 Year (excl. Intangibles)

Debt-to-Equity Ratio

Debt-to-Equity ratio, is the Long-term Debt over the Equity of a company. Looking at the capital base of the company, this ratio gives the balance between debt and equity the company retains. A ratio of more than 1, indicates that the company in order to finance its operations, it has undertaken more debt than it has issued share capital. And vice-versa.

The calculation is as follows:

= (creditors long + creditors other + subordinated loans + insurance funds) / (ord cap,reserves + prefs,minorities)