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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.  
Long Term Debt to Total Capitalization Ratio
Long Term Debt 
 Long Term Debt to Total Capitalization Ratio =
Long Term Debt + Total Stockholder's Equity

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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