A debt-to-equity ratio of 1.75 means that a company has $1.75 of debt for every $1.00 of equity. This indicates that the company relies more heavily on debt than equity to finance its operations ...

What Does a High Debt-to-Equity Ratio Mean? For a mature company, a high D/E ratio can be a sign of trouble that the firm will not be able to service its debts and can eventually lead to a credit ...

We see the ratio for McDonald's is minus 6.65; what does negative debt-to-equity mean? Returning to the formula above, we note that when debt is less than equity, it results in a positive number ...

Get a handle on what debt may mean for a prospective investment. S&P 500 +---% | Stock ... The debt-to-equity ratio is the most commonly used metric and appears on most financial websites.

Long-Term Debt to Equity Ratio = Long-Term Debt / Shareholders’ (or Total) Equity LTDE Ratio = 500,000 / 1,000,000 = 0.5 This means that the company has $0.50 of long-term debt for every dollar ...

A bad liability-to-equity ratio is high, which means the company has a lot of ... A higher ratio suggests a higher risk of defaulting on long-term debt. 4. What does a debt-to-equity ratio of 0.5 ...

Investment word of the day: Assessing a company's financial health involves evaluating its debt-to-equity ratio, which compares total debt to shareholder equity. A high ratio indicates reliance on ...

“Similar to the debt-to-equity ratio, this ratio needs to be compared to peers in the same industry to determine an appropriate ratio. If the ratio exceeds one, then it means that there are more ...

The exchange ratio – or how much equity is granted per unit of debt – is determined based on the company's financial standing, stock valuation and creditor willingness.