The Long Term Debt to Equity is a measure of a company's financial leverage. It is calculated as Long Term Debt divided by Equity. This is measured using the most recent balance sheet available, whether interim or end of year.
The ratio is calculated by taking the company's long-term debt and dividing it by the book value of common equity.
The greater a company's leverage, the higher the ratio. Generally, companies with higher Debt to Equity ratios are thought to be more risky.
This is because a higher proportion of assets must go towards servicing interest payments on debt, which are fixed. If income falls it can quickly fall below the minimum level required to service these interest payments leaving equity investors with nothing.
| Ticker | Name | LT Debt / Equity | StockRank™ |
|---|---|---|---|
| LON:MEX | Tortilla Mexican Grill | -8,009.22% | 43 |
| LON:FAR | Ferro-Alloy Resources | -6,322.51% | 8 |
| LON:STVG | STV | -2,957.89% | 46 |
| LON:CPP | CPPGroup | -2,888.46% | 22 |
| LON:SNWS | Smiths News | -2,300.00% | 99 |