Switch to:
GuruFocus has detected 3 Warning Signs with China Information Technology Inc \$CNIT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
China Information Technology Inc (NAS:CNIT)
Debt-to-Equity
0.46 (As of Jun. 2016)

China Information Technology Inc's current portion of long-term debt for the quarter that ended in Jun. 2016 was \$6.49 Mil. China Information Technology Inc's long-term debt for the quarter that ended in Jun. 2016 was \$0.00 Mil. China Information Technology Inc's total equity for the quarter that ended in Jun. 2016 was \$14.20 Mil. China Information Technology Inc's debt to equity for the quarter that ended in Jun. 2016 was 0.46.

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.

China Information Technology Inc's Debt to Equity Ratio for the fiscal year that ended in Dec. 2015 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (15.273 + 0) / 20.685 = 0.74

China Information Technology Inc's Debt to Equity Ratio for the quarter that ended in Jun. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (6.494 + 0) / 14.199 = 0.46

* 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.

China Information Technology Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 deb2equity 0.00 0.00 0.06 0.12 0.20 0.30 0.59 1.59 2.67 0.74

China Information Technology Inc Semi-Annual Data

 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 deb2equity 0.30 0.24 0.59 1.02 1.59 1.35 2.67 2.83 0.74 0.46
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)