The reason I ask is this: if you have increasing equity either from your liquid share investments or properties, how comfortable are you to increase your debt through cheap loans now to invest in more properties and shares? How do you factor in serviceability and the more important thing, your emotion or risk appetite towards higher level debt? What's your percentage at the moment? A quick calculation and we're currently at 25% debt to equity ratio with a 40/60 split in properties / liquid assets.
Edit: when I say personal debt, I actually mean personal debt used for investment purposes.
1 + Debt / Equity = Assets / Equity ?
I'm just having trouble putting the pieces together
Hi,
When calculating any debt to xx ratio, The current and non current lease liability, should be part of debt? Or only we consider loans and bonds??
Thanks.
I don’t understand why people buy stocks like KMB or PEP (nice products and demand I get it), but their debt to equity ratio is increasing like hell for the past few years, how do you proceed with a company like that? Should I just avoid or please tell me what am I missing..
So I've read that Debt to Equity ratio, generally speaking, shouldn't be above 2.
I'm trying to do some DD on yahoo finance and I'm looking at Total Debt/Equity under the statistics tab.
The number for Ameriprise financial, for example, is 84.27.
Underneath that, it says "Current Ratio" which is 7.84.
Is that current ratio the Debt/Equity ratio? Or is the ratio 84.27 but yahoo just use a different scale?
I’m not sure if this is the right subreddit, but I could use some advice. I bought a home before I got married it is in another state and has had tenants in it for 5 years now. It makes a nice profit that we use to pay my wife’s student loans, and put away for a baby fund. I have 12 years worth of equity in it, plus appreciation.
In December 2019, my wife went on maternity leave-we used the baby fund; Covid hit in March; and she lost her job end of March. She was able to access all her clients though and decided it was better to start her own company and keep doing her thing. Meanwhile in April, I decided to refinance our primary residence. Because my wife was busy starting her start-up, I just refinanced the property in my name only.
An opportunity has presented itself to buy a third rental property and I would like to buy in. When I contacted my bank about a HELOC they stated my debt to income ratio was 70%. They did not count my wife’s salary since she only has 2 months worth of time in her new job, and no paycheck December till March. They stated that since both liabilities are in my name only the debt to income ratio was too high. This is in addition to standard liabilities like cars, 37 new windows, and student loans.
I asked about a cash out refi on my rental property and they said that was not possible since it is not owner occupied.
Are there other suggestions for how to access some of my equity? Is this going to be the story at every bank? Thank you all for your feedback
Edit: just wanted to say thank you all. I have a call tomorrow with a smaller bank I’ve held an account with for awhile and the. I’ll start hunting small banks near me. I appreciate the ammunition of discussing other types of loans other than the typical heloc, refi that I thought of and will start running those down soon too.
Debt to equity ratio basically measures the leverage that a company has. This is a good indication of their solvency, which is how much total liabilities are exceeded by total assets.
Hi All,
Hoping for some assistance in understanding the Wesfarmers Debt to Equity Ratio, in particular FY20 vs FY19.
According to page 172 of their FY20 Annual Report the ratio was 0.9% Vs. 25.1% in FY19. This is obviously a significant change for such a large business.
Doing some further digging it appears the difference was mainly caused by two factors:
-
The demerger of Coles
-
The change in accounting reporting standards to AASB16 between these two reporting periods
Hoping for any further insights into the reason for this change and the ramifications for the Wesfarmers business (helping a friend with an accounting assignment!)
Cheers.
Hey guys, where can I find companies' debt to equity ratio on Robinhood? Sorry if this is a dumb question. I'm new here
I was planning for my parents on their next purchase. It just occur to me that they have a shit loads of debt..
3 mortgages (850k)
4 properties (ACB: 2m; FMV: 2.8m)
they are considering to take out another 400k to purchase another property..
that would put them to have over 1.3m loan. And I always want to be conservative. lets say their overall asset is 3m. Is that a healthy debt to equity ratio? 76%?
what are you guys thoughts?
What website is the best for tracking company information like this?
