% Long Term Debt to Total Capitalization
1 definitions

Shows the relative position of lenders and investors in a business over the long term.

The calculation is: long term debt / (long term debt + stockholders equity).

Theoretically, the lower the % Long Term Debt to Total Capitalization, the more cash can be reinvested into the company vs. paying interest on debt.

FK Reading Ease
52.1

FK Grade Level
High School
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