Sentences with phrase «equity ratio»

They all have debt to equity ratios of less than 50 %, a good thing if a recession does occur.
You will find that many capital intensive industries tend to have greater debt / equity ratios as tangible assets are financed using debt.
I think these are great conditions considering my low equity ratio under 10 %.
This is so that you can answer any questions asked pertaining to financial statements or debt equity ratios.
I think these are great conditions considering my low equity ratio under 10 %.
As a thumb rule, invest in companies with debt to equity ratio less than 1 as it means that the debts are less than the equity.
Australian companies also have a relatively low debt to equity ratio at 40 per cent for the top 100 countries.
Companies generally aim to maintain a debt - to - equity ratio between the two extremes.
On the other hand, a high debt - to - equity ratio translates into higher risk for shareholders since creditors are always first in line for compensation should the company go bankrupt.
However, NC has a debt / equity ratio above 1.
From the perspective of companies, it is therefore important to measure the debt - to - equity ratio because capital structure is one of the fundamental considerations in financial management.
In the big picture, the debt - equity ratio tells us that debt isn't bad as long as there is a sufficient amount of equity.
You can also calculate your own, personal debt - to - equity ratio by taking your debt and dividing it by your net worth.
To measure each firm's reliance on debt we compare its debt - to - equity ratio against other companies in the same industry.
Good yield ~ 4 %, Good equity ratio ~ 50 %.
Normally I start getting worried when the debt / equity ratio goes over 1.
Companies with low debt - to - equity ratios compared to their peers get higher grades.
A low debt to equity ratio means lower risk to investors, since it means there is less debt relative to the available equity.
The «optimal» debt / equity ratio theories are best left in the classroom.
A high debt - to - equity ratio indicates that a company is primarily financed through debt.
The debt - to - equity ratio divides total debt by the value of the outstanding shares and is another ratio used to assess financial strength.
A higher debt - equity ratio however is not always a bad thing.
From the perspective of investors and lenders, debt - equity ratio affects the security of their investment or loan.
What constitutes an acceptable range of debt - to - equity ratio varies from organization to organization based on several factors as discussed below.
The majority of these rules are designed to apply when a company has a debt - to - equity ratio beyond a predetermined threshold.
[In my opinion, this is the key bank equity ratio you should always focus on — look for a minimum of 8 - 10 %.
The debt to equity ratio identifies companies that are highly leveraged and therefore a higher risk for investors.
So the debt to equity ratio does not go up, and it does not negatively impact a company's credit rating, he added.
Probably with a debt to equity ratio of something like 8 to 10.
I have 10 - 20 year retirement goal and keeping debt - equity ratio as 30 - 70 %.
On the other hand, a high debt - to - equity ratio translates into higher risk for shareholders since creditors are always first in line for compensation should the company go bankrupt.
This can cause an inconsistency in the measurement of the debt - equity ratio because equity will usually be understated relative to debt where book values are used.
In the big picture, the debt - equity ratio tells us that debt isn't bad as long as there is a sufficient amount of equity.
I am trying to do the same type of experiment, only with low p / b stocks that also have a debt / equity ratio less than 0.2.
Overall, I would not recommend using the total debt to equity ratio by itself to chase stock returns.
As a thumb of rule, companies with the debt - to - equity ratio more than 1 are risky and should be considered carefully before investing.
A debt to equity ratio compares a company's total debt to total equity, as the name implies.
The Magic Formula diverges from Graham's strategy by exchanging for Graham's absolute price and quality measures (i.e. price - to - earnings ratio below 10, and debt - to - equity ratio below 50 percent) a ranking system that seeks those stocks with the best combination of price and quality more akin to Buffett's value investing philosophy.
The following chart shows the debt to shareholders equity ratios for each of the stocks highlighted as a liquidation candidate above, rebased so that the last year's number equals 100.
The debt - to - equity ratio shown in Table 2 looks at the financial strength and leverage of a company, while the payout ratio reports how much of earnings are being paid out in the form of dividends.
Generally, as a firm's debt - to - equity ratio increases, it becomes riskier A lower debt - to - equity number means that a company is using less leverage and has a stronger equity position.
Granted, if you are doing a peers analysis and the company you are looking at has a much larger debt - to - equity ratio in relation to its peers, you may want to avoid that company.
The return on equity ratio or ROE is a profitability ratio that measures the ability of a firm to generate
Calculating Debt - to - Equity The debt - to - equity ratio offers one of the best pictures of a company's leverage.
EMR has a manageable 0.74 debt / equity ratio which has been increasing slightly over the years but nothing too alarming.

Phrases with «equity ratio»

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