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Debt to capital ratio

• The ratio of total debt to total capital ([short + long term debt] / capital). For long-term investors, a suggested acceptable percentage is up to 33%. Debt must be funded in good times and bad, so a company going through a bad slump has a better chance of recovering if its debt load is not too high. Keep in mind that debt serves the useful function of helping the company grow. It is up to management to use it wisely and increase the sales and earnings.

 
 

Follow this link for all the terms related to capitaldebtratio.

 
 Embedded terms in definition
 Capital
Debt
Earnings
Its
Long term debt
Long term
Long
Sales
Total capital
Total debt
 
 Related Terms
 
Acid test ratio
Appraisal ratio
Asset/equity ratio
Average cost of capital
Average price earning ratio
Capital
Capital account
Capital adequacy
Capital allocation decision
Capital appreciation
Capital asset
Capital asset pricing model
Capital budget
Capital budgeting
Capital cost allowance
Capital expenditure
Capital flight
Capital gain
Capital gains yield
Capital impairment rule
Capital lease
Capital loss
Capital market
Capital market efficiency
Capital market imperfections view
Capital market line
Capital rationing
Capital stock
Capital structure
Capital surplus
Cash flow coverage ratio
Cash ratio
Change in net working capital
Common equity ratio
Complete capital market
Constant payout ratio dividend policy
Conversion ratio
Cost benefit ratio
Cost of capital
Cost of debt
Cost of limited partner capital
Cost of long term debt
Current pe ratio
Current ratio
Days' sales in inventory ratio
Debt
Debt capacity
Debt capital
Debt covenants
Debt displacement
Debt due
Debt equity ratio
Debt financing
Debt instrument
Debt leverage
Debt limit
Debt limitation
Debt market
Debt ratio
Debt relief
Debt securities
Debt security
Debt service
Debt service coverage ratio
Debt service parity approach
Debt swap
Debt to equity ratio
Debt/equity ratio
Dedicated capital
Dividend payout ratio
Earnings retention ratio
Efficient capital market
Equity capital
Exchange rate risk capital budgeting
Expense ratio
Financial or capital lease
Financial ratio
Firm's net value of debt
Fixed asset turnover ratio
Fixed charge coverage ratio
Funded debt
Funding ratio
Gigo garbage in, garbage out in capital budgeting
Gold/silver ratio
Hard capital rationing
Hedge ratio delta
Human capital
Income replacement ratio
Interest coverage ratio
Interest rate on debt
Inventory turnover ratio
Invested capital
Issued share capital
Junior debt subordinate debt
Lagging pe ratio
Leading pe ratio
Legal capital
Long term debt
Long term debt ratio
Long term debt to capitalization
Long term debt to equity ratio
Low price earnings ratio effect
Margin of profit ratio
Marginal cost of capital
Marginal cost of capital schedule
Market book ratio
Market to book ratio
Net working capital
Net working capital recapture
Nondiversifiability of human capital
Operating profit ratio
Opportunity cost of capital
Optimal capital structure
Original issue discount debt oid debt
Other capital
Outstanding share capital
P/e ratio
Payout ratio
Pe ratio
Pe ratio to eps growth
Pecking order view of capital structure
Perfect capital market
Perfect market view of capital structure
Personal tax view of capital structure
Pie model of capital structure
Planned capital expenditure program
Plowback ratio
Preferred equity ratio
Price buy zone ratio
Price earnings ratio
Price to book ratio
Price to cash flow ratio
Price to earnings ratio
Price to sales ratio
Price/book ratio
Price/earnings p/e ratio
Price/sales ratio
Pro forma capital structure analysis
Projected pe ratio
Q ratio or tobin's q ratio
Quick acid test ratio
Quick asset ratio
Quick ratio
Ratio analysis
Ratio of exchange
Ratio of exchange in market price
Ratio spread
Ratio writes
Real capital
Real options capital budgeting
Receivables turnover ratio
Regulatory capital
Retention ratio
Reward to volatility ratio
Risk capital budgeting
Secured debt
Senior debt
Sharpe ratio
Short term debt
Soft capital rationing
Sophisticated approaches to capital budgeting
Standard debt provisions
Static theory of capital structure
Structured debt
Subordinated debt
Target capital structure
Target dividend payout ratio
Target payout ratio
Taxable capital gain
Times interest earned ratio
Total capital
Total debt
Total debt to equity ratio
Total debt to total assets
Trade debt
Trailing pe ratio
Unfunded debt
Uniform net capital rule
Unsecured debt
Upside/downside ratio
Venture capital
Weighted average cost of capital
Working capital
Working capital management
Working capital ratio
Yield ratio

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