Policy & Guidance
Interim Economic Guidance for Water Quality Standards
Worksheet L
Debt to Equity Ratio
DER = LTL รท OE
Where: | DER | = |
Debt/Equity Ratio |
LTL | = |
Long-Term Liabilities (long-term debt such as bonds, debentures, and bank debt, and all other noncurrent liabilities such as deferred income taxes) | |
OE | = |
Owner Equity (the difference between total assets and total liabilities, including contributed or paid in capital and retained earnings) |
Three Most Recently Completed Fiscal Years |
|||||||
19 ___ |
19 ___ |
19 ___ |
|||||
LTL | $________ | $________ | $________ | (1) | |||
OE | $________ | $________ | $________ | (2) | |||
DER [(1)/(2)] | (3) |
Considerations:
Is the most recent year typical of the three years? __ Yes __ No
(If not, you might want to use an earlier year or years for the analysis)
How does the Debt to Equity Ratio compare with the ratio for firms in the same business?