Explore the significance of the debt-to-equity ratio in assessing a company's risk. Learn calculations, industry standards, and business implications.

For example, if a company's total debt is $20 million and its shareholders' equity is $100 million, then the debt-to-equity ratio is 0.2. This means that for every dollar of equity the company has ...

Long-term debt / Total assets = Long-term debt ratio For example, let’s say a company has $1,200,000 in long-term debt and $2,000,000 in total assets. Here’s how the formula would look: ...

As long as the development company's D/E ratio doesn't grossly exceed the average industry standard, an analyst might still consider it to be a solid investment. Debt-to-Equity Ratio Formula.

Debt-equity ratio is one of the ways to measure your business's financial health. ... Some debt/equity ratios plug in only long-term debt rather than all debt. Expansion and Debt.

If a company has $700,000 of long-term liabilities and total assets that equal $3,500,000, the formula would be 700,000 / 3,500,000, which equals a long-term debt ratio of 0.2.

Long-term debt is debt that is to be repaid over a period greater than 12 months. Discover how it compares to short-term debt, its pros, cons and more. Sections ...

Long-term debt refers to financial obligations that are due for repayment after more than one year from the date of the balance sheet. Here's what investors should know.