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Diamond Foods Inc (NAS:DMND)
Debt to Equity
2.27 (As of Apr. 2014)

Diamond Foods Inc's current portion of long-term debt for the quarter that ended in Apr. 2014 was $6.6 Mil. Diamond Foods Inc's long-term debt for the quarter that ended in Apr. 2014 was $638.4 Mil. Diamond Foods Inc's total equity for the quarter that ended in Apr. 2014 was $284.0 Mil. Diamond Foods Inc's debt to equity for the quarter that ended in Apr. 2014 was 2.27.

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.

Diamond Foods Inc's Debt to Equity Ratio for the fiscal year that ended in Jul. 2013 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(5.86 + 585.077) / 166.72
=3.54

Diamond Foods Inc's Debt to Equity Ratio for the quarter that ended in Apr. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(6.631 + 638.351) / 284.035
=2.27

* 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.

Diamond Foods Inc Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
deb2equity 0.000.220.180.160.140.661.461.171.863.54

Diamond Foods Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
deb2equity 1.391.631.861.901.701.903.544.244.232.27
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