Debt-to-capital ratio

A company's debt-to-capital ratio or D/C ratio is the ratio of its total debt to its total capital, its debt and equity combined. The ratio measures a company's capital structure, financial solvency, and degree of leverage, at a particular point in time. The data to calculate the ratio are found on the balance sheet.

Practitioners use different definitions of debt:

• Any interest-bearing liability to qualify
• All liabilities, including accounts payable and deferred income
• Long-term debt and its associated currently due portion (measures capital structure)

Companies alter their D/C ratio ratio by issuing more shares, buying back shares, issuing additional debt, or retiring debt.

See also

• Debt-to-equity ratio
• Financial ratio

This article about investment is a stub. You can help Wikipedia by expanding it.v · Categories: Financial ratios Investment stubs Wikimedia Foundation. 2010. Игры ⚽ Нужно решить контрольную? Debt-for-nature swap Debt-to-equity ratio Look at other dictionaries: Debt to capital ratio — The Debt to Capital Ratio (D/C ratio) shows the proportion of a company s debt to its total capital, which consists of the sum of its debt and equity combined. For example, if a company uses $25 debt and $75 in equity, the total capital of the… …   Wikipedia Debt-To-Capital Ratio — A measurement of a company s financial leverage, calculated as the company s debt divided by its total capital. Debt includes all short term and long term obligations. Total capital includes the company s debt and shareholders equity, which… …   Investment dictionary Debt-to-equity ratio — The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders equity and debt used to finance a company s assets.[1] Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage. The …   Wikipedia debt/capital ratio — UK US (also debt to capital ratio) noun [C] (ABBREVIATION D/C ratio) ► FINANCE a company s debt as a percentage of its capital as a whole, used to calculate if it has borrowed too much, if it can borrow more, etc.: »The company has a financial… …   Financial and business terms Debt to equity ratio — The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company s assets. This ratio is also known as Risk, Gearing or Leverage. It is equal to total debt divided by shareholders …   Wikipedia 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: A variation of the traditional debt to equity ratio, this value computes the proportion of a company s long term debt… …   Investment dictionary Total Asset-To-Capital Ratio - TAC — A leverage covenant placed on Canadian Institutions regulated by the Office of the Superintendent of Financial Institutions (OSFI). The total asset to capital ratio is computed by taking the total assets divided by capital. It is not a risk… …   Investment dictionary Capital adequacy ratio — (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR), is a ratio of a bank s capital to its risk. National regulators track a bank s CAR to ensure that it can absorb a reasonable amount of loss [Cite web |… …   Wikipedia Debt deflation — is a theory of economic cycles, which holds that recessions and depressions are due to the overall level of debt shrinking (deflating): the credit cycle is the cause of the economic cycle. The theory was developed by Irving Fisher following the… …   Wikipedia Debt capital — is the capital that a business raises by taking out a loan. It is a loan made to a company that is normally repaid at some future date. Debt capital differs[1] from equity or share capital because subscribers to debt capital do not become part… …   Wikipedia 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”