Financial Metric
Debt-to-capital measures how much of a company’s long-term financing structure is represented by interest-bearing debt.
Formula and measurement
Debt-to-Capital = Total debt ÷ (Total debt + Shareholders’ equity) × 100
PriceToWorth displays the metric from the latest suitable data available. Period definitions, share counts and provider updates can affect comparability, so users should confirm the relevant reporting period.
Why the metric matters
The ratio provides a compact view of financial leverage and helps compare changes in financing policy over time.
Interpretation and limitations
Negative equity, large write-downs, leases, off-balance-sheet obligations and sector-specific funding models can make the ratio difficult to interpret. A stable business may support more debt than a cyclical one.
How to use it on PriceToWorth
Combine the ratio with net debt, interest coverage, free cash flow, debt maturities, refinancing needs and peer norms. Direction over several periods is often more useful than one observation.
Research checklist
- Check the reporting period and whether the value is trailing, annualized or forward-looking.
- Compare the company with suitable industry peers and its own history.
- Investigate sudden changes and corporate actions.
- Read the latest company filing before relying on a material figure.
- Treat a dash, Not available or NM as unavailable—not as zero.
