Switch to:
Spartech Corporation (NYSE:SEH)
Debt to Equity
0.75 (As of Oct. 2012)

Spartech Corporation's current portion of long-term debt for the quarter that ended in Oct. 2012 was $23 Mil. Spartech Corporation's long-term debt for the quarter that ended in Oct. 2012 was $112 Mil. Spartech Corporation's total equity for the quarter that ended in Oct. 2012 was $180 Mil. Spartech Corporation's debt to equity for the quarter that ended in Oct. 2012 was 0.75.

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.

Spartech Corporation's Debt to Equity Ratio for the fiscal year that ended in Oct. 2012 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(22.636 + 112.288) / 179.985
=0.75

Spartech Corporation's Debt to Equity Ratio for the quarter that ended in Oct. 2012 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(22.636 + 112.288) / 179.985
=0.75

* 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.

Spartech Corporation Annual Data

Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
deb2equity 0.711.140.920.650.761.210.910.890.910.75

Spartech Corporation Quarterly Data

Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
deb2equity 0.670.890.890.890.810.910.980.900.800.75
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide