Скачать или смотреть What Is Long Term Debt Equity? | Stock Market For Beginners | Investing In Stocks For Beginners

What Is Long Term Debt Equity? | Stock Market For Beginners | Investing In Stocks For Beginners

In today’s video, I’m going to be talking about the long term debt to equity ratio. Let's get straight into it.

The long term debt to equity ratio is used to evaluate a company's financial leverage and is calculated by dividing a company’s total long term debt by its shareholder equity.

The long term debt to equity ratio is an important metric used when investing in stocks. It is a measure of the degree to which a company is financing its operations through debt versus wholly owned funds. More specifically, it reflects the ability of shareholder equity to cover long term debts in the event of a business downturn.

Given that the long term debt to equity ratio measures a company’s debt relative to the value of its net assets, it is most often used to gauge the extent to which a company is taking on debt as a means of leveraging its assets. A high ratio is often associated with high risk; it means that a company has been aggressive in financing its growth with debt.

A higher ratio may make it harder for a company to obtain financing in the future. This means that the firm may have a harder time servicing its existing debts. Very high long term debt to equity can be indicative of a credit crisis in the future, including defaulting on loans or bonds, or even bankruptcy.

Generally speaking, a long term debt to equity ratio below 1 would be seen as relatively safe.

The long term debt to equity ratio shouldn’t be used in isolation as it doesn’t tell you the full story of a company. It should be used alongside other tools & ratios during fundamental analysis.

Thank you for watching!

How To Analyse & Value Stocks Spreadsheet - https://lewishardinginvest.com/how-to...

Join my Patreon:   / lewishardinginvest  

Subscribe to my Newsletter: https://lewishardinginvest.substack.c...

💎AFFILIATE PARTNERS💎
Portfolio Tracker - https://bit.ly/PortfolioTrackerLHI
Freetrade - https://bit.ly/FreetradeLHI
Stake - https://bit.ly/StakeLHI
Orca - http://bit.ly/OrcaLHI
Genuine Impact - http://bit.ly/GenuineImpactAppLHI
getquin - http://bit.ly/getquinLHI
Plum - https://bit.ly/PlumLHI
Chip - http://bit.ly/ChipLHI
Snoop - http://bit.ly/SnoopLHI
Coinbase - http://bit.ly/CoinbaseLHI
BlockFi - http://bit.ly/BlockFiLHI
Crypto.com - http://bit.ly/CryptoLHI
Ziglu - http://bit.ly/ZigluLHI
Bitpanda - http://bit.ly/bitpandaLHI
Quidco - http://bit.ly/QuidcoLHI
TopCashback - http://bit.ly/TopCashbackLHI

SUPPORT ME🍻
Recommendations: https://lewishardinginvest.com/recomm...
Buy me a beer: https://www.buymeacoffee.com/lewishar...

CONTENT💻
Website: https://lewishardinginvest.com/
YouTube:    / lewishardinginvest  
Patreon:   / lewishardinginvest  
Newsletter: https://lewishardinginvest.substack.c...
Blog: https://lewishardinginvest.com/blog
⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
WHO AM I?😄
Hey there! I’m Lewis from Yorkshire, United Kingdom and I have a deep interest in business and value investing.

My experience in professional finance combined with a passion for researching and reading all things investing has accelerated my financial literacy.

By investing in multiple asset classes such as property, stocks, and venture capital, I have started my journey to financial independence. My mission is to inspire others by documenting my progress via social media.

CONTACT ME📬
Email: [email protected]
YouTube:    / lewishardinginvest  
Instagram:   / lewishardinginvest  
Facebook:   / lewishardinginvest  
Twitter:   / lewishinvest  
TikTok:   / lewishardinginvest  
LinkedIn:   / lewisharding  

DISCLAIMER🚨Lewis Harding and his investment portfolio, his holdings and any related buy or sell decisions are not recommendations to invest or not invest. Lewis’ videos, online content and investment portfolio should be seen as a source of information and education only. You must always do your own research, make your own investment decisions and seek a regulated financial advisor if you are unsure of any investment.