DEBT/EQUITY RATIO
A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. If a lot of debt is used to finance increased operations, the company could potentially generate more earnings than it would have without this outside financing. If this were to increase earnings by a greater amount than the debt cost, then the shareholders benefit as more earnings are being spread among the same amount of shareholders.
POPULAR TERMS
Liquidity Adjustment Facility
A tool in monetary policy where banks are allowed to borrow money through repurchase agreements, and to respond to liquidity pressures. The governm ...
Data Warehousing
Electronic storage of information in a business or corporation. It should be secure, reliable and easy to retrieve and manage. It originated in 198 ...
One-Tailed Test
A statistical test where the critical area of a circulation is one-sided so that it is either less than or greater than a specific value, but not b ...
Less-than-Truckload
A shipping service that carries small loads of freight, weight between partial and full truckload. The service is being offered by many large and n ...
Original Cost
It simply refers to the total cost associated in buying an asset.
POPULAR ARTICLE
SEE FOREX TUTORIAL
Retirement Planning: Allocating Money for Retirement
In the previous tutorial, we outlined the significance of retirement. Now, let’s talk about the how in retirement planning.
“ ...
Retirement Planning: Creating a Nest Egg
Last time, we discuss the different income sources for building a retirement fund. We shall now tackle the ways to create a retirement nest egg.
Digesting Financial Statements: Filing
Companies need to file several financial reports in different periods with the Securities and Exchange Commission.
14A Prox ...
Buying a Home: Obtaining a Homeowners Insurance
You are one step closer to acquiring your dream house, and you want to make sure it has substantial protection against any disaster or occurrence t ...
Student Loans: Repayment in Times of Financial Difficulty
One day, you are in the middle of a financial hardship. Unfortunately, you still have student loans to pay. What will you do? In times like these, ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 02:30 | PMI Manufacturing | Nov | |
| 02:30 | Company Operating Profits | 3 quarter | |
| 02:30 | ANZ Jobs Advertisements | Nov | |
| 03:45 | Markit Final Manufacturing PMI | Nov | |
| 07:30 | Commodity Prices | Nov | |
| 09:30 | Retail Sales | Oct | |
| 10:15 | PMI Manufacturing | Nov | |
| 10:45 | PMI Manufacturing | Nov | |
| 10:50 | PMI Manufacturing | Nov |


