debt-equity ratio

debt-equity ratio
A ratio used to examine the financial structure or gearing of a business. The long-term debt, normally including preference shares, of a business is expressed as a percentage of its equity. A business may have entered into an agreement with a bank that it will maintain a certain debt-equity ratio; if it breaches this agreement the loan may have to be repaid. The debt-equity ratio is now sometimes expressed as the ratio of the debt to the sum of the debt and the equity. See gearing ratios

Big dictionary of business and management. 2014.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • debt-equity ratio — ➔ ratio …   Financial and business terms

  • debt/equity ratio — See gearing. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Debt/Equity Ratio — A measure of a company s financial leverage calculated by dividing its total liabilities by stockholders equity. It indicates what proportion of equity and debt the company is using to finance its assets. Note: Sometimes only interest bearing,… …   Investment dictionary

  • Debt/equity ratio — Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long term debt by common stockholder equity. The New York Times Financial Glossary * * *    A ratio that measures a… …   Financial and business terms

  • debt/equity ratio — Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long term debt by common stockholder equity. Bloomberg Financial Dictionary * * *    A ratio that measures a company …   Financial and business terms

  • debt–equity ratio — A ratio used to examine the financial structure or gearing (leverage) of a business. The long term debt, normally including preference shares, of a business is expressed as a percentage of its equity. A business may have entered into an agreement …   Accounting dictionary

  • debt-equity ratio — The ratio of a corporation’s *long term *debt to its *equity. The elements of equity used in the ratio include *common stock, *preferred stock, and *retained earnings. The debt equity ratio measures a corporation’s *leverage …   Auditor's dictionary

  • debt-equity ratio — An amount arrived at by dividing total liabilities by total equity of an entity (e.g., total liabilities of corporation divided by total shareholders equity). A high debt ratio is an indication that the entity may have difficulty meeting… …   Black's law dictionary

  • debt-equity ratio — An amount arrived at by dividing total liabilities by total equity of an entity (e.g., total liabilities of corporation divided by total shareholders equity). A high debt ratio is an indication that the entity may have difficulty meeting… …   Black's law dictionary

  • debt-equity ratio — financial leverage of a business long term loans in relation to its equity serving as a measure of long term financial stability (Accounting) …   English contemporary dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”