| Debt/Equity Ratio | |
 A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets. Note: Sometimes investors only use interest bearing long-term debt instead of total liabilities.  |
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 A higher debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. |
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 Debt Reckoning - Learn about debt ratios and how to use them to assess a company's financial health. You could save a lot of money! Ratio Analysis Tutorial - If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios. Spotting Disaster - When a company is headed for trouble, the warning signs are usually there. We tell you what to look for. |
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