Long term debt/equity: related pages

The proposition that the proportion of debt to equity does not affect the total value (debt + equity) of a company.

Debt financing that is not shown on the face of the balance sheet.

A measure of the indebtedness of a company. Usually one of: long term debt ÷equity, total debt ÷equity or net debt ÷equity.

Profit before interest and tax, divided by interest payable.

Operational gearing is the effect of fixed costs on the relationship between sales and operating profits.

Operating cash flow ÷ current liabilities; a measure a company's ability to pay its short term liabilities.

The Altman z-score is a measure of a company's financial strength that uses a weighted sum of several factors.

The ratio of the NPV of cash available to pay a loan over its life to the amount outstanding.