Greater use of leasing and factoring is reducing their ratios of bank debt to equity.
That put the company's ratio of debt to equity at 5.53, compared with 2.94 a year earlier.
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The strings: GMAC had to convert 75% of its debt to equity by last Friday at midnight.
Verghese notes that Olam's bankers have capped the company's ratio of debt to equity at five times.
Colgate too has reduced its debt to equity ratio of 2.5 in 2005 to below 1 by 2009.
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With a debt to equity ratio of 60%, OC has significant although not unmanageable debt, and pays no dividend.
Coke has a debt to equity ratio of .99-meaning that debt is about equal to equity in the company.
So your debt to equity ratio, the amount that you owe, what you are worth, is going to change dramatically.
These companies are forever seeking the right mix in their ratio of debt to equity now trying to please shareholders, now creditors.
Unilever has reduced leverage over the past five years from a debt to equity ratio of 1.6 in 2005 to 0.73 in 2010.
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First, "technical" issues such as haircuts, converting debt to equity, liquidating assets or improving corporate governance have to be implemented, not just talked about.
Prasit Patana was in trouble with shares suspended from trading and owned mostly by local and Singapore-based banks that had converted their debt to equity.
According to Jaap Meijer, an analyst with Dresdner Kleinwort, if the French government converted this debt to equity it would be a different story.
In fact, debt to equity is now below 50%, the first time this can be said for WHR on a yearly basis since before the Great Recession began.
Randstad has modest debt, about 45% net debt to equity.
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Even when I diversified into property and later into multinational businesses, I was still vigilant about maintaining a healthy debt to equity ratio, well within the margin of errors.
That problem is ongoing, because Asian leverage has not declined, it's merely been transferred to the state, enabling the corporate sector to get its ratio of debt to equity down.
Smaller firms, which account for more than three-quarters of the economy, have ratios of debt to equity almost twice those of big companies and are thus more vulnerable to rising rates.
When I am measuring the true indebtedness of an enterprise, I like looking at liabilities as a percentage of oversimplified enterprise value even more than I like looking at debt to equity ratios.
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The first three parameters we look to are rising revenues over the most recent three-year period, rising earnings over the recent three-year period and a relatively low or controlled long-term debt to equity.
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This both increases the volatility of equity returns and transfers value from debt to equity in the presence of default risks but has little to do with the Modigliani-Miller theorem in which default risk plays no part.
Also, the average yield of DAX stocks is 3.5%, almost three times the yield on the 10-year German government benchmark bond, a factor that could persuade yield-hungry investors deterred by low returns on government bonds to switch from debt to equity.
Others lenders were willing to extend higher amounts of credit than the company was seeking, but in our view, the debt to equity ratio they were being offered was not healthy for the company, and not something that Hercules would support in either a bull or bear market.
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From there, the field is narrowed down to those with debt-to-equity ratios of less than 1.0, eliminating those stocks whose debt burdens may prevent them from growing distributions substantially going forward.
To the extent that the company issues debt to buy equity, that might indeed boost earnings per share.
Managers may increase risk, as you note, by issuing debt to repurchase equity.
Many firms deliberately manage their ratio of outstanding debt to shareholder equity.
You've got companies with 500% to 600% debt-to-equity ratios and not enough profits.
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