Company    Contact    Home    Products    Download    Order    Support 
Spireframe Software, makers of Value Investor - the easiest way to learn stock analysis and valuation of stocks. Spireframe Software, makers of Value Investor - the easiest way to learn stock analysis and valuation of stocks.  
Equity to Total Debt
Total Stockholder's Equity
 Equity to Total Debt =
 Short-Term Debt + Long-Term Debt

Explanation of Equity to Total Debt:

The Equity to Total Debt ratio measures how much debt the company can have and still be able to meet debt obligations with its equity. 

Importance of Equity to Total Debt:

A high, or increasing Equity to Total debt ratio is usually a positive sign, showing the company is better able to cover its debt.  A value of 1.0 means the company has just enough equity to cover its debt (the company is barely solvent), but a value of 2.0 or greater value is desired.

Useful Links:

Calculate the Equity to Total Debt ratio and compare this to other companies and other ratios automatically,  - Download a FREE, fully-functional trial of Value Investor
Have you already tried Value Investor? Then order the full version - Order from our FAST, SECURE online order page.
What other financial terms, ratios, or other calculations would you like to see on this website or in Value Investor? Let us know!