MARKETS / GLOSSARY / NET DEBT TO EQUITY

Net debt to equity

How much the company owes, net of what it holds in cash, against what the owners have in it. The standard measure of financial leverage.

Definition

How it is computed here

Formula(total debt − cash) ÷ shareholders' equity
UnitMultiple (×)
PeriodOne fiscal year, as reported
SourceExtracted from SEC filings; every value on an asset page carries the accounting tag and the filing it came from
Identifierdivida_liquida_patrimonio
The limit

What this number does not tell you

A negative figure means the company holds more cash than debt, which is a position and not an error. And where equity is small or negative the ratio explodes or inverts without the debt having changed — the denominator is doing the work, not the borrower.

Every metric on this site is published with its blind spot stated. A figure without its limit is half a fact.

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In the data

Highest reported net debt to equity

From the most recent fiscal year of each company.

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