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PetSmart Inc (NAS:PETM)
Debt to Equity
0.42 (As of Oct. 2014)

PetSmart Inc's current portion of long-term debt for the quarter that ended in Oct. 2014 was \$72 Mil. PetSmart Inc's long-term debt for the quarter that ended in Oct. 2014 was \$449 Mil. PetSmart Inc's total equity for the quarter that ended in Oct. 2014 was \$1,239 Mil. PetSmart Inc's debt to equity for the quarter that ended in Oct. 2014 was 0.42.

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.

PetSmart Inc's Debt to Equity Ratio for the fiscal year that ended in Jan. 2014 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (66.887 + 451.597) / 1093.782 = 0.47

PetSmart Inc's Debt to Equity Ratio for the quarter that ended in Oct. 2014 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (71.705 + 449.432) / 1238.846 = 0.42

* 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.

PetSmart Inc Annual Data

 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 deb2equity 0.39 0.45 0.57 0.51 0.49 0.48 0.49 0.47 0.47 0.37

PetSmart Inc Quarterly Data

 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 deb2equity 0.46 0.47 0.50 0.45 0.43 0.47 0.49 0.45 0.42 0.37
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