RONA (TSX:RON.PR.A.PFD) Debt-to-Equity : 0.32 (As of Mar. 2016)

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What is RONA Debt-to-Equity?

RONA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was C$138.01 Mil. RONA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was C$356.54 Mil. RONA's Total Stockholders Equity for the quarter that ended in Mar. 2016 was C$1,537.91 Mil. RONA's debt to equity for the quarter that ended in Mar. 2016 was 0.32.

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.

The historical rank and industry rank for RONA's Debt-to-Equity or its related term are showing as below:

TSX:RON.PR.A.PFD' s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: 0.32

TSX:RON.PR.A.PFD's Debt-to-Equity is not ranked
in the Retail - Cyclical industry.
Industry Median: 0.62 vs TSX:RON.PR.A.PFD: 0.32

RONA Debt-to-Equity Historical Data

The historical data trend for RONA's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RONA Debt-to-Equity Chart

RONA Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Debt-to-Equity

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0.13

0.18

0.11

0.12

0.27

RONA Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Debt-to-Equity	Get a 7-Day Free Trial															0.28	0.19	0.21	0.27	0.32

Competitive Comparison of RONA's Debt-to-Equity

For the Home Improvement Retail subindustry, RONA's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

RONA's Debt-to-Equity Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, RONA's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where RONA's Debt-to-Equity falls into.

RONA Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

RONA's Debt to Equity Ratio for the fiscal year that ended in Dec. 2015 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(190.559	+	227.153)	/	1567.619
	=	0.27

RONA's Debt to Equity Ratio for the quarter that ended in Mar. 2016 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(138.008	+	356.537)	/	1537.912
	=	0.32

RONA (TSX:RON.PR.A.PFD) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

RONA Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of RONA's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

RONA (TSX:RON.PR.A.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » RONA Inc (TSX:RON.PR.A.PFD) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.rona.ca

Rona Inc founded on October 6, 1939, is engaged in the distribution and retail of hardware, home improvement and gardening products in Canada. The Company has three segments of activity in hardware, renovation and construction marketplace: distribution, retail and commercial and professional. The Company provides automotive products, building materials and accessories, decoration products, gutter and accessories, hand tools, hardware products, horticulture products, kitchen and bathroom products, lighting and electrical products, paint products, plumbing products, power tools, pre-seasonal products, storage and house ware products, tiling products, winter season products, and gift cards, as well as heating, ventilation, and air conditioning (HVAC) products. The Company also provides construction plans. The Company's model comprises of various store formats that address specific markets or consumer sectors and three ownership formulas.

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