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Zale Corp (NYSE:ZLC)
Debt to Equity
2.32 (As of Jan. 2014)

Zale Corp's current portion of long-term debt for the quarter that ended in Jan. 2014 was \$0 Mil. Zale Corp's long-term debt for the quarter that ended in Jan. 2014 was \$445 Mil. Zale Corp's total equity for the quarter that ended in Jan. 2014 was \$192 Mil. Zale Corp's debt to equity for the quarter that ended in Jan. 2014 was 2.32.

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.

Zale Corp's Debt to Equity Ratio for the fiscal year that ended in Jul. 2013 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (0 + 410.05) / 185.329 = 2.21

Zale Corp's Debt to Equity Ratio for the quarter 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 = (0 + 445.267) / 192.073 = 2.32

* 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.

Zale Corp Annual Data

 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 deb2equity 0.27 0.16 0.25 0.25 0.55 0.83 0.96 1.86 2.53 2.21

Zale Corp Quarterly Data

 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 deb2equity 2.85 2.10 2.20 2.53 3.45 2.44 2.36 2.21 3.31 2.32
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