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Education Management Corp (OTCPK:EDMC)
Debt-to-Equity
-5.28 (As of Jun. 2014)

Education Management Corp's current portion of long-term debt for the quarter that ended in Jun. 2014 was \$232 Mil. Education Management Corp's long-term debt for the quarter that ended in Jun. 2014 was \$1,272 Mil. Education Management Corp's total equity for the quarter that ended in Jun. 2014 was \$-285 Mil. Education Management Corp's debt to equity for the quarter that ended in Jun. 2014 was -5.28.

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.

Education Management Corp's Debt to Equity Ratio for the fiscal year that ended in Jun. 2014 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (231.765 + 1271.586) / -284.873 = -5.28

Education Management Corp's Debt to Equity Ratio for the quarter that ended in Jun. 2014 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (231.765 + 1271.586) / -284.873 = -5.28

* 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.

Education Management Corp Annual Data

 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 deb2equity 0.01 1.52 1.44 1.37 1.27 0.74 0.74 3.18 3.82 -5.28

Education Management Corp Quarterly Data

 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 deb2equity 0.87 3.18 3.00 2.79 3.69 3.82 5.20 5.01 -12.72 -5.28
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