Long-Term Debt To Capitalization Ratio

Long-Term Debt To Capitalization Ratio
A ratio showing the financial leverage of a firm, calculated by dividing long-term debt by the amount of capital available:
Long-Term Debt To Capitalization Ratio

A variation of the traditional debt-to-equity ratio, this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • Long-term debt to equity ratio — A capitalization ratio comparing long term debt to shareholders equity. The New York Times Financial Glossary …   Financial and business terms

  • long-term debt-to-equity ratio — A capitalization ratio comparing long term debt to shareholders equity. Bloomberg Financial Dictionary …   Financial and business terms

  • Long-term debt ratio — The ratio of long term debt to total capitalization. The New York Times Financial Glossary …   Financial and business terms

  • long-term debt ratio — The ratio of long term debt to total capitalization . Bloomberg Financial Dictionary …   Financial and business terms

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  • capitalization ratio — A measure of a corporation s reliance on long term debt. Similar to the debt to worth ratio but not the same. This ratio is calculated by dividing long term debt by the sum of long term debt plus equity. American Banker Glossary …   Financial and business terms

  • Total debt to equity ratio — A capitalization ratio comparing current liabilities plus long term debt to shareholders equity. The New York Times Financial Glossary …   Financial and business terms

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