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Education Management Corp  (OTCPK:EDMC) Debt-to-Equity: -5.28 (As of Jun. 2014)

Education Management Corp's Current Portion of Long-Term Debt for the quarter that ended in Jun. 2014 was $232 Mil. Education Management Corp's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2014 was $1,272 Mil. Education Management Corp's Total Equity for the quarter that ended in Jun. 2014 was $-285 Mil. Education Management Corp's debt to equity for the quarter that ended in Jun. 2014 was -5.28.

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.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Education Management Corp Annual Data

Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
Debt-to-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.74 0.74 3.18 3.82 -5.28

Education Management Corp Quarterly Data

Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
Debt-to-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.82 5.20 5.01 -12.72 -5.28

Competitive Comparison
* 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.


Calculation

Debt to Equity measures the financial leverage a company has.

Education Management Corp's Debt to Equity Ratio for the fiscal year that ended in Jun. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt & Capital Lease Obligation) / Total Equity
=(231.765 + 1271.586) / -284.873
=-5.28

Education Management Corp's Debt to Equity Ratio for the quarter that ended in Jun. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt & Capital Lease Obligation) / Total Equity
=(231.765 + 1271.586) / -284.873
=-5.28

* 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 & Capital Lease Obligation divided by Total 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.


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