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KKR Financial Holdings LLC (NYSE:KFN)
Debt to Equity
2.38 (As of Dec. 2013)

KKR Financial Holdings LLC's current portion of long-term debt for the quarter that ended in Dec. 2013 was \$125.3 Mil. KKR Financial Holdings LLC's long-term debt for the quarter that ended in Dec. 2013 was \$5,895.2 Mil. KKR Financial Holdings LLC's total equity for the quarter that ended in Dec. 2013 was \$2,527.7 Mil. KKR Financial Holdings LLC's debt to equity for the quarter that ended in Dec. 2013 was 2.38.

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.

KKR Financial Holdings LLC's Debt to Equity Ratio for the fiscal year that ended in Dec. 2013 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (125.289 + 5895.176) / 2527.734 = 2.38

KKR Financial Holdings LLC's Debt to Equity Ratio for the quarter that ended in Dec. 2013 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (125.289 + 5895.176) / 2527.734 = 2.38

* 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.

KKR Financial Holdings LLC Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 deb2equity 2.10 2.18 6.55 4.52 13.57 7.69 4.03 4.05 3.45 2.38

KKR Financial Holdings LLC Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 deb2equity 4.05 3.90 3.67 3.46 3.45 2.43 2.41 2.32 2.38 2.48
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