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| Long Term Debt to Total Capitalization Ratio |
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Long Term Debt
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| Long Term Debt to Total Capitalization Ratio =
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Long Term Debt + Total Stockholder's Equity
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Explanation of Long Term Debt to Total Capitalization
Ratio:
The Long Term Debt to Total Capitalization Ratio measures the
percentage of the company's Total Assets that are financed with long term
debt. For this ratio, Long Term Debt and Total Stockholder's Equity
are both considered long-term, as the equity provided by stockholders is part
of the total capitalization (full debt load) of the company.
Importance of Long Term Debt to Total Capitalization
Ratio:
This ratio is another way of looking at the debt structure of the
company, specifically determining what portion of the total capitalization is
comprised of Long Term Debt.
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