- Equity Ratio
- Debt to Equity Ratio
- Debt Ratio
Equity Ratio - common stockholders' equity to total capital of the business shows how much of the total capitalization actually comes from the owners.
Common Shareholders' Equity / Total Capital Employed = Equity Ratio
Debt to Equity Ratio - a high ratio means less protection for creditors. A low ratio indicates a wider safety margin.
(Debt+Preferred Long-Term) / Common Stockholders' Equity = Debt to Equity Ratio
Debt Ratio - what percentage of your funds are provided by creditors? Creditors prefer a lower ratio, and management may prefer to leverage operations producing a higher ratio.
(Current + Long-Term Debt) / Total Assets = Debt Ratio
Read more about ratios at:
Financial Metrics - Ratio Analysis Considerations