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Morgan Stanley (NYSE:MS)
Debt to Equity
2.74 (As of Dec. 2013)

Morgan Stanley's current portion of long-term debt for the quarter that ended in Dec. 2013 was $2,142 Mil. Morgan Stanley's long-term debt for the quarter that ended in Dec. 2013 was $178,143 Mil. Morgan Stanley's total equity for the quarter that ended in Dec. 2013 was $65,921 Mil. Morgan Stanley's debt to equity for the quarter that ended in Dec. 2013 was 2.73.

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.

Morgan Stanley'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
=(2142 + 178143) / 65921
=2.73

Morgan Stanley'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
=(2142 + 178143) / 65921
=2.73

* 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

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

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

Morgan Stanley Annual Data

Nov04Nov05Nov06Nov07Nov08Dec09Dec10Dec11Dec12Dec13
deb2equity 4.6716.3217.4616.833.904.493.793.263.062.74

Morgan Stanley Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
deb2equity 3.353.263.242.703.033.063.052.892.782.74
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