Financial Analysis

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Debt-to-Capital Ratio

Debt to Capital Ratio: Explanation – Calculation – Example

What Is the Debt To Capital Ratio? A company’s financial leverage is measured by the debt-to-capital ratio. The debt-to-capital ratio is derived by dividing the total capital by the company’s interest-bearing debt, both short- and long-term obligations. Debt includes all interest-bearing debt.  Shareholders’ equity may comprise common stock, preferred stock, […]