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McMoRan Exploration Co. (NYSE:MMR)
Debt to Equity
0.34 (As of Mar. 2013)

McMoRan Exploration Co.'s current portion of long-term debt for the quarter that ended in Mar. 2013 was \$67.8 Mil. McMoRan Exploration Co.'s long-term debt for the quarter that ended in Mar. 2013 was \$490.0 Mil. McMoRan Exploration Co.'s total equity for the quarter that ended in Mar. 2013 was \$1,664.9 Mil. McMoRan Exploration Co.'s debt to equity for the quarter that ended in Mar. 2013 was 0.34.

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.

McMoRan Exploration Co.'s Debt to Equity Ratio for the fiscal year that ended in Dec. 2012 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (67.832 + 489.47) / 1603.211 = 0.35

McMoRan Exploration Co.'s Debt to Equity Ratio for the quarter that ended in Mar. 2013 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (67.832 + 489.997) / 1664.927 = 0.34

* 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.

McMoRan Exploration Co. Annual Data

 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 deb2equity -1.54 -5.45 -3.12 -3.57 2.15 1.21 1.41 0.33 0.32 0.35

McMoRan Exploration Co. Quarterly Data

 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 deb2equity 0.33 0.33 0.34 0.33 0.32 0.32 0.34 0.35 0.35 0.34
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