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Primus Guaranty Ltd  (OTCPK:PRSG) Debt-to-Equity: -1.18 (As of Dec. 2011)

Primus Guaranty Ltd's Current Portion of Long-Term Debt for the quarter that ended in Dec. 2011 was $0.00 Mil. Primus Guaranty Ltd's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2011 was $172.33 Mil. Primus Guaranty Ltd's Total Equity for the quarter that ended in Dec. 2011 was $-145.64 Mil. Primus Guaranty Ltd's debt to equity for the quarter that ended in Dec. 2011 was -1.18.

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.

Primus Guaranty Ltd Annual Data

Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
Debt-to-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.49 -0.18 -0.71 -2.37 -1.18

Primus Guaranty Ltd Quarterly Data

Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11
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 -2.37 -27.77 3.84 -0.79 -1.18

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.

Primus Guaranty Ltd's Debt to Equity Ratio for the fiscal year that ended in Dec. 2011 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt & Capital Lease Obligation) / Total Equity
=(0 + 172.334) / -145.638
=-1.18

Primus Guaranty Ltd's Debt to Equity Ratio for the quarter that ended in Dec. 2011 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt & Capital Lease Obligation) / Total Equity
=(0 + 172.334) / -145.638
=-1.18

* 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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