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GuruFocus has detected 6 Warning Signs with National Grid PLC \$NGG.
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National Grid PLC (NYSE:NGG)
Debt-to-Equity
2.57 (As of Sep. 2016)

National Grid PLC's current portion of long-term debt for the quarter that ended in Sep. 2016 was \$5,452 Mil. National Grid PLC's long-term debt for the quarter that ended in Sep. 2016 was \$36,898 Mil. National Grid PLC's total equity for the quarter that ended in Sep. 2016 was \$16,501 Mil. National Grid PLC's debt to equity for the quarter that ended in Sep. 2016 was 2.57.

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.

National Grid PLC's Debt to Equity Ratio for the fiscal year that ended in Mar. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (5143.87464387 + 35232.1937322) / 19309.1168091 = 2.09

National Grid PLC's Debt to Equity Ratio for the quarter that ended in Sep. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (5452.03679369 + 36897.5032852) / 16500.6570302 = 2.57

* 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.

National Grid PLC Annual Data

 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 deb2equity 3.81 3.92 6.75 5.98 2.56 2.49 2.75 2.18 2.17 2.09

National Grid PLC Semi-Annual Data

 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 deb2equity 2.49 2.65 2.75 2.36 2.18 2.11 2.17 2.17 2.09 2.57
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