Long-Term Debt/Capitalization
A ratio showing the financial leverage of a firm, calculated by dividing long-term debt by the amount of capital available:
Investopedia Says:
A variation of the traditional debt-to-equity ratio, this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies who finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios. Related Terms:
Capitalization
Common Stock
Debt
Debt/Equity Ratio
Interest-Sensitive Stock
Leverage
Long-Term Debt
Preferred Stock
Shareholders' Equity |