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Hovnanian Enterprises Inc (NYSE:HOV)
Debt to Equity
-12.25 (As of Jul. 2016)

Hovnanian Enterprises Inc's current portion of long-term debt for the quarter that ended in Jul. 2016 was \$222 Mil. Hovnanian Enterprises Inc's long-term debt for the quarter that ended in Jul. 2016 was \$1,640 Mil. Hovnanian Enterprises Inc's total equity for the quarter that ended in Jul. 2016 was \$-152 Mil. Hovnanian Enterprises Inc's debt to equity for the quarter that ended in Jul. 2016 was -12.25.

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.

Hovnanian Enterprises Inc's Debt to Equity Ratio for the fiscal year that ended in Oct. 2015 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (268.249 + 1895.247) / -128.084 = -16.89

Hovnanian Enterprises Inc's Debt to Equity Ratio for the quarter that ended in Jul. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (221.596 + 1640.255) / -151.943 = -12.25

* 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.

Hovnanian Enterprises Inc Annual Data

 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 deb2equity 1.25 1.79 8.13 -5.31 -5.07 -3.42 -3.52 -3.93 -15.75 -16.89

Hovnanian Enterprises Inc Quarterly Data

 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 deb2equity -3.96 -4.08 -15.75 -16.10 -14.53 -14.16 -16.89 -14.01 -13.22 -12.25
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