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Family Dollar Stores Inc (NYSE:FDO)
Debt to Equity
0.26 (As of May. 2015)

Family Dollar Stores Inc's current portion of long-term debt for the quarter that ended in May. 2015 was \$185 Mil. Family Dollar Stores Inc's long-term debt for the quarter that ended in May. 2015 was \$299 Mil. Family Dollar Stores Inc's total equity for the quarter that ended in May. 2015 was \$1,854 Mil. Family Dollar Stores Inc's debt to equity for the quarter that ended in May. 2015 was 0.26.

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.

Family Dollar Stores Inc's Debt to Equity Ratio for the fiscal year that ended in Aug. 2014 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (16.2 + 484.226) / 1665.725 = 0.30

Family Dollar Stores Inc's Debt to Equity Ratio for the quarter that ended in May. 2015 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (185.2 + 299.139) / 1854.135 = 0.26

* 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

Historical Data

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

Family Dollar Stores Inc Annual Data

 Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 deb2equity 0.00 0.21 0.21 0.20 0.17 0.18 0.51 0.42 0.32 0.30

Family Dollar Stores Inc Quarterly Data

 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 deb2equity 0.49 0.48 0.32 0.48 0.50 0.47 0.30 0.45 0.33 0.26
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