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BHP Billiton Ltd (NYSE:BHP)
Debt to Equity
0.50 (As of Dec. 2013)

BHP Billiton Ltd's current portion of long-term debt for the quarter that ended in Dec. 2013 was $6,333 Mil. BHP Billiton Ltd's long-term debt for the quarter that ended in Dec. 2013 was $31,702 Mil. BHP Billiton Ltd's total equity for the quarter that ended in Dec. 2013 was $76,559 Mil. BHP Billiton Ltd's debt to equity for the quarter that ended in Dec. 2013 was 0.50.

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.

BHP Billiton Ltd's Debt to Equity Ratio for the fiscal year that ended in Jun. 2013 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(5213 + 29847) / 70664
=0.50

BHP Billiton Ltd's Debt to Equity Ratio for the quarter that ended in Dec. 2013 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(6333 + 31702) / 76559
=0.50

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

BHP Billiton Ltd Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
deb2equity 0.440.570.370.420.330.410.330.280.430.50

BHP Billiton Ltd Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
deb2equity 0.410.370.330.280.280.400.430.530.500.50
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