When investing in a company, one of the most important factors you need to consider is how much debt the company is carrying. Here are some questions to ask yourself when analyzing a company's debt: How much debt really exists? What kind of debt is it (long/short-term maturities)? What is the debt for (repay or refinance old debts)? Can the company afford the debt if it runs into financial trouble? And, finally, how does it compare to the debt levels of competing companies?
Investment dictionary. Academic. 2012.
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net debt — Total loans less cash balances. Dresdner Kleinwort Wasserstein financial glossary … Financial and business terms
Net Debt To EBITDA Ratio — A measurement of leverage, calculated as a company s interest bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt to EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay… … Investment dictionary
Net Debt Per Capita — A measurement of the value of a government s debt expressed in terms of the amount attributable to each citizen under the government s jurisdiction. It is commonly computed using the following formula: The level of net debt per capita is an… … Investment dictionary
Net Debt To Estimated Valuation — A ratio comparing the net value of a municipal bond issue to the estimated market value of the property secured by the debt. This ratio can differ significantly from a municipal bond s net debt to assessed valuation if real estate prices for the… … Investment dictionary
Net Debt To Assessed Valuation — In a municipal bond issue, a ratio measuring the value of the municipality s net debt compared to the specified value of the real property being purchased as assessed for tax purposes. This is one of the factors which determines the quality of a… … Investment dictionary
net debt to equity ratio — See gearing ratio. Dresdner Kleinwort Wasserstein financial glossary … Financial and business terms
debt/capital ratio — UK US (also debt to capital ratio) noun [C] (ABBREVIATION D/C ratio) ► FINANCE a company s debt as a percentage of its capital as a whole, used to calculate if it has borrowed too much, if it can borrow more, etc.: »The company has a financial… … Financial and business terms
Debt levels and flows — Public debt as a percent of GDP (2010) … Wikipedia
Debt-To-Capital Ratio — A measurement of a company s financial leverage, calculated as the company s debt divided by its total capital. Debt includes all short term and long term obligations. Total capital includes the company s debt and shareholders equity, which… … Investment dictionary
Debt overhang — is when an organization (for example, a business, government, or family) has existing debt so great that it cannot easily borrow more money, even when that new borrowing is actually a good investment that would more than pay for itself. This… … Wikipedia