Sentences with phrase «term debt to equity ratio»

The long term debt to equity ratio is the same concept as the normal debt to equity ratio, but it uses a company's long term debt instead.

To help you with your investing and financial terminology, let's take a look at what this ratio is, what it means, how to calculate it and the importance of understanding a long term debt to equity ratio.

Not exact matches

Even though the company has a strong debt - to - equity ratio, the quick ratio of 0.17 is very weak and demonstrates a lack of ability to pay short - term obligations.

Despite the fact that XOM's debt - to - equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short - term cash needs.

Despite the fact that PG's debt - to - equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short - term cash needs.

The ratio business equity to long - term debt provides a window of opportunity identifying the cause and effect of industry finances.

The solid fundamentals extend to the balance sheet, although the company is actively (as they should) improving the leverage: the long - term debt / equity ratio is 0.65, while the interest coverage ratio exceeds 6.

Both short - and long - term debt are used to calculate the debt - to - equity ratio.

The Forbes rankings for the «400 Best Big Companies in America» are based on stringent criteria including accounting and governance ratings, revenue, positive equity, long - term earnings growth and debt - to - capital ratios.

By using a combination of assets, debt, equity, and interest payments, leverage ratios are used to understand a company's ability to meet it long - term financial obligations.

But in addition to raising debt - to - equity ratios, these short - term tactics «bleed» companies, forcing them to cut back on research, development and projects that require long lead times to complete.

Company financial strength is scored by looking at levels of the current ratio (current assets divided by current liabilities) and debt - to - equity ratio (long - term debt divided by equity and expressed as a percentage).

Banks, for example, tend to have very large debt - to - equity ratios because they fund short - term loans by issuing debt.

For companies not in the utility sector, the long - term debt - to - equity ratio is less than or equal to 50 % and the dividend payout ratio is less than or equal to 50 %.

Intel's low debt - to - equity ratio of 2.5 % indicates that very little long - term debt is issued by the company, while its payout ratio of 9.3 % indicates the majority of earnings are retained for use by the company.

I'm having a hard time getting equity out of my 5 properties, 1 paid off, the rest with plenty of equity, but my debt to income ratio of 60 - 65 % and the fact that most of my income is coming from short term rentals (airbnb, between 75k - 85k income), is making qualifying really difficult even though I have 2 years of history, 740 credit score.

One of these terms is the debt to equity ratio.

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.

If you think in terms of opportunity costs, it seems irrational to adopt any investing rule unconnected to whether the position is undervalued and safe per traditional Graham / Buffett value metrics like PE, price to cash flow, debt to equity, current ratio, and DCF analysis.

Need 40 lakh for Girl child education and marriage in span of 15 - 20 years Risk ability: Moderate Investment horizon: 20 years Debt - Equity ratio: 30 - 70 % (investing last 6 months) Emergency fund: Keeping 3 - 4 months of monthly income Medical coverage: Have term plan of 50L, will need to take for my parents.

Debt - to - equity ratio of 0.25 calculated using formula 2 in the above example means that the company utilizes long - term debts equal to 25 % of equity as a source of long - term finance.

Where long - term debt is used to calculate debt - equity ratio it is important to include the current portion of the long - term debt appearing in current liabilities (see example).

Debt - to - equity ratio of 0.20 calculated using formula 3 in the above example means that the long - term debts represent 20 % of the organization's total long - term finances.

For our next filters, if a company is not in the utility sector, the payout ratio for the last 12 months had to be less than or equal to 50 % and the company's long - term debt - to - equity ratio must be 50 % or lower.

The bank's balance sheet is far superior to its peers, with a long - term debt / equity ratio of 1.0 and an interest coverage ratio of 9.4.

In terms of its balance sheet, the retailer's debt - to - equity ratio is 21.2 percent, but appears to have flexibility in terms of its debt capacity.