When a business has
a high debt to equity ratio, it has imposed on itself a large block of fixed cost in the form of interest expense, which increases its breakeven point.
This backtest of the total debt to equity ratio reveals that the third, fourth and fifth quintiles (the quintiles with
the highest debt to equity ratios) outperform the S&P 500 Equal Weight Index benchmark.
Not exact matches
Comparing Companies After determining the extent of a company's
debt, the investor should next assess whether the company's
debt -
to -
equity ratio is too
high.
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.
Compared
to the broad XIC, XEG has a) a price
to earnings
ratio that is only slightly
higher, b) a price
to book
ratio that is lower, c) a
debt to equity ratio that is about half of XIC, d) a dividend yield that is comparable and e) profit margins that grew 30 % this year versus 18 % for XIC.
While there is no exact definition, quality typically refers
to some combination of
high profitability, a low
debt -
to -
equity ratio, and earnings consistency.
Negative
equity borrowers often achieved
high loan -
to - value
ratios with subordinate liens in addition
to their first lien and had
higher than average
debt -
to - income
ratios.
In fact, lenders, partners, suppliers and investors may all be turned off by a
high debt -
to -
equity ratio.
A
high debt -
to -
equity ratio indicates that a company is primarily financed through
debt.
Just like an individual whose
debt far outweighs his or her assets, a company with a
high debt -
to -
equity ratio is in a precarious state.
That's why a
high debt -
to -
equity ratio can be a red flag for investors.
«As interest rates increase, if they go too
high, the
higher debt -
to -
equity ratios and leverage will have a negative effect on cash flows.»
I know if by
debt to income
ratio is
high I may get a
higher interest rate on the home
equity loan or the bank may not give me the loan at all.
I was also wondering, that since balanced funds have a
high expense
ratio, does it make sense
to invest in
equity MFs separately and a
debt fund instead of a balanced fund?
In addition
to your home
equity, you'll need
to meet
debt -
to - income -
ratio requirements on the
higher mortgage payments.
Hengfu seeks
to find stocks with strong earnings and sales growth, favorable p / e / g
ratios,
high operating margins, low
debt -
to -
equity, consistent free cash and relative price strength.
If you have extremely
high debt -
to - income
ratio and there is not much of
equity in the property, you will not qualify for an
equity loan
to be able
to consolidate your bills.
Construction Loan... my husband and I are in a position
to buy 2 lots of property fairly cheap... we have
high debt to income
ratio... would the
equity in our houses and the rent we could obtain be enough
to qualify for a construction loan...
In addition, seniors with low credit scores and
high debt -
to - income
ratios may not be able
to qualify for a home
equity loan or HELOC.
In terms of quantitative metrics, the following criteria may be used in a screener: a
debt /
equity ratio above 2 - 3,
high debt relative
to EBITDA and large drops in stock prices.
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.
That means you can have a lower credit score and less home
equity than you'd need for a conventional loan and, in some cases, a
higher debt -
to - income
ratio.
Let's say your preferred allocation is 80:20 (
equity:
debt), markets reach new
highs and your
equity unrealized gains may soar, this may result in
higher % of
equity investments corpus in your portfolio, so you may have
to book some profits and move the monies
to debt category,
to maintain 80:20
ratio.
Debt - to - equity ratio which is low, say 0.1, would suggest that the company is not fully utilizing the cheaper source of finance (i.e. debt) whereas a debt - to - equity ratio that is high, say 0.9, would indicate that the company is facing a very high financial r
Debt -
to -
equity ratio which is low, say 0.1, would suggest that the company is not fully utilizing the cheaper source of finance (i.e.
debt) whereas a debt - to - equity ratio that is high, say 0.9, would indicate that the company is facing a very high financial r
debt) whereas a
debt - to - equity ratio that is high, say 0.9, would indicate that the company is facing a very high financial r
debt -
to -
equity ratio that is
high, say 0.9, would indicate that the company is facing a very
high financial risk.
When
debt -
to -
equity ratio is
high, it increases the likelihood that the company defaults and is liquidated as a result.
But if the
debt to equity ratio is quite
high, it may signal that the company is already carrying too much
debt that may make it unable
to pay its obligations
to its creditors or lenders.
i cant even get a Home
Equity Loan, because my
DEBT to Income
Ratio is too
high, and i can not reduce it @ these Interest RATES!
The
debt to equity ratio identifies companies that are highly leveraged and therefore a
higher risk for investors.
A company equipped with low
Debt to Equity Ratio, low
Debt to Assets
Ratio, low Capitalization
Ratio, and
high Interest Coverage
Ratio is likely
to stay afloat in a bear market.
Deed Deposit Down Payment
Equity Estoppel Agreement Fire / Property Insurance Fixed Rate Mortgage Gross
Debt Service
Ratio High Ratio Mortgage Interest Rate Loan
to Value Maturity Date