Long-term debt to capital ratio is a measure of a company’s financial leverage or how much it relies on debt to finance its assets. It shows how much of a company’s capital is funded by its long-term debt. It is calculated by dividing the long-term debt by the total capital. It is reported as a percentage. The formula for long-term debt to capital ratio is:
Long-term debt to capital ratio = (Long-term debt / Total capital) * 100
Where:
- Long-term debt is BS051,
bs_lt_borrow
- Total capital is BS075,
bs_tot_cap