Long-term debt to equity ratio is a measure of a company’s leverage or how much it relies on debt to finance its assets. It shows how much of a company’s equity is matched by its long-term debt. It is calculated by dividing the long-term debt by the total shareholder’s equity. It is reported as a percentage. The formula for long-term debt to equity ratio is:
Long-term debt to equity ratio = (Long-term debt / Total shareholder’s equity) * 100
Where:
- Long-term debt is BS051,
bs_lt_borrow
- Total shareholder’s equity is BS072,
bs_total_equity