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GuruFocus has detected 1 Warning Sign with Tesco PLC $TSCDY.
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Tesco PLC (OTCPK:TSCDY)
Debt-to-Equity
1.86 (As of Feb. 2017)

Tesco PLC's current portion of long-term debt for the quarter that ended in Feb. 2017 was $3,200 Mil. Tesco PLC's long-term debt for the quarter that ended in Feb. 2017 was $11,791 Mil. Tesco PLC's total equity for the quarter that ended in Feb. 2017 was $8,048 Mil. Tesco PLC's debt to equity for the quarter that ended in Feb. 2017 was 1.86.

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.

Tesco PLC's Debt to Equity Ratio for the fiscal year that ended in Feb. 2017 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(3200 + 11791.25) / 8047.5
=1.86

Tesco PLC's Debt to Equity Ratio for the quarter that ended in Feb. 2017 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(3200 + 11791.25) / 8047.5
=1.86

* 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 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 local exchange's currency.

Tesco PLC Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
deb2equity 0.681.230.910.670.660.650.761.791.571.86

Tesco PLC Semi-Annual Data

Aug12Feb13Aug13Feb14Aug14Feb15Aug15Feb16Aug16Feb17
deb2equity 0.720.650.680.761.031.792.051.572.391.86
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