Long-term debt-to-equity ratio
factor.formula
Long-term debt to capital ratio:
in:
- :
It represents the total amount of non-current liabilities of the company in the most recent reporting period, including long-term loans, bonds payable, etc., reflecting the debts that the company needs to repay in more than one year. Non-current liabilities are an important part of measuring a company's long-term debt burden.
- :
It represents the total assets of a company in the most recent reporting period, including the sum of current assets and non-current assets, reflecting all economic resources controlled by the company. Total assets are an important indicator of a company's size and financial strength.
factor.explanation
The long-term debt-to-capital ratio reveals the degree of reliance on long-term debt financing in a company's asset structure by calculating the proportion of non-current liabilities in total assets. A lower ratio usually means that the company is more dependent on equity financing or short-term liabilities and has relatively low financial risk, while a higher ratio means that the company is more dependent on long-term debt financing, has higher financial leverage and greater potential risk. Investors and creditors can use this indicator to assess a company's long-term financial stability and debt repayment ability. The actual significance of this indicator is better reflected within the industry or when compared with historical data. This indicator is an important indicator for measuring a company's long-term capital structure and risk appetite.