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GuruFocus has detected 8 Warning Signs with Australia and New Zealand Banking Group Ltd \$ANZBY.
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Australia and New Zealand Banking Group Ltd (OTCPK:ANZBY)
Debt-to-Equity
2.00 (As of Sep. 2016)

Australia and New Zealand Banking Group Ltd's current portion of long-term debt for the quarter that ended in Sep. 2016 was \$70,920 Mil. Australia and New Zealand Banking Group Ltd's long-term debt for the quarter that ended in Sep. 2016 was \$16,677 Mil. Australia and New Zealand Banking Group Ltd's total equity for the quarter that ended in Sep. 2016 was \$43,901 Mil. Australia and New Zealand Banking Group Ltd's debt to equity for the quarter that ended in Sep. 2016 was 2.00.

A high debt to 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.

Definition

Debt to Equity measures the financial leverage a company has.

Australia and New Zealand Banking Group Ltd's Debt to Equity Ratio for the fiscal year that ended in Sep. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (70920.2733485 + 16677.2968869) / 43901.2908125 = 2.00

Australia and New Zealand Banking Group Ltd's Debt to Equity Ratio for the quarter that ended in Sep. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (70920.2733485 + 16677.2968869) / 43901.2908125 = 2.00

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Australia and New Zealand Banking Group Ltd Annual Data

 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 deb2equity 3.93 3.88 3.13 2.92 2.48 2.77 2.78 0.61 0.73 2.00

Australia and New Zealand Banking Group Ltd Semi-Annual Data

 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 deb2equity 3.93 3.88 3.13 2.92 2.48 2.77 2.78 0.61 0.73 2.00
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