AOREF (American Overseas Group) Debt-to-Equity: 1.02 (As of Jun. 2009)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is American Overseas Group Debt-to-Equity?

American Overseas Group AOREF Debt-to-Equity is 1.02 as of Jun. 2009.

American Overseas Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2009 was $0.00 Mil. American Overseas Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2009 was $35.00 Mil. American Overseas Group's Total Stockholders Equity for the quarter that ended in Jun. 2009 was $34.24 Mil. American Overseas Group's debt to equity for the quarter that ended in Jun. 2009 was 1.02.

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 American Overseas Group's Debt-to-Equity or its related term are showing as below:

AOREF's Debt-to-Equity is not ranked *
in the Insurance industry.
Industry Median: 0.2
* Ranked among companies with meaningful Debt-to-Equity only.

American Overseas Group  (OTCPK:AOREF) 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.

American Overseas Group Debt-to-Equity Related Terms

American Overseas Group Debt-to-Equity Historical Data

* Premium members only.

The historical data trend for American Overseas Group'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.

American Overseas Group Debt-to-Equity Chart

American Overseas Group Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Debt-to-Equity
Get a 7-Day Free Trial 0.13 0.12 0.11 0.16 0.45

American Overseas Group Quarterly Data
Dec03 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09
Debt-to-Equity Get a 7-Day Free Trial 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 0.22 0.31 0.45 1.07 1.02

AOREF vs OXBR, BCRH, MHLD: Debt-to-Equity Comparison

For the Insurance - Reinsurance subindustry, American Overseas Group'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.

American Overseas Group Debt-to-Equity vs Insurance Industry

For the Insurance industry and Financial Services sector, American Overseas Group's Debt-to-Equity distribution charts can be found below:

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


American Overseas Group Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

American Overseas Group's Debt to Equity Ratio for the fiscal year that ended in Dec. 2008 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
=(0 + 40) / 89.358
=0.45

American Overseas Group's Debt to Equity Ratio for the quarter that ended in Jun. 2009 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
=(0 + 35) / 34.24
=1.02

* 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.

Frequently Asked Questions Learn more about Debt-to-Equity →
What does a Debt-to-Equity of 1.02 mean?
American Overseas Group (AOREF) has a Debt-to-Equity of 1.02 as of Jun. 2009. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on American Overseas Group and its competitors.
Is American Overseas Group's Debt-to-Equity too high?
American Overseas Group's current Debt-to-Equity is 1.02. The Insurance industry median Debt-to-Equity is 0.20. American Overseas Group's value of 1.02 is 410% above this industry median.
How does American Overseas Group's Debt-to-Equity compare to OXBR and BCRH?
American Overseas Group's Debt-to-Equity of 1.02 can be compared against companies in the Insurance industry. The industry median Debt-to-Equity is 0.20. American Overseas Group's value of 1.02 is 410% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for an Insurance company?
The median Debt-to-Equity among Insurance companies is 0.20, based on 405 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Overseas Group's current Debt-to-Equity of 1.02 is 410% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on American Overseas Group and its competitors. For the Insurance industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Overseas Group's current Debt-to-Equity is 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Overseas Group stock overvalued right now?
American Overseas Group (AOREF) has a current Debt-to-Equity of 1.02. The current Debt-to-Equity is 1.02 and 410% above the Insurance industry median of 0.20. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For American Overseas Group (AOREF), the current Debt-to-Equity is 1.02 as of Jun. 2009. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

American Overseas Group Business Description

Address Cumberland House 6th Floor 1 Victoria Street, Hamilton, BMU, HM 11
American Overseas Group Ltd is a provider of insurance services. Its business consists of U.S.-based property and casualty insurance companies that provide non-standard auto insurance through specialty managing general agents; A Barbados domiciled affiliate reinsurance company that assumes and reinsures a small portion of the U.S. sourced nonstandard auto business; and U.S based management services company. The company is organized into two operating segments: property/casualty insurance/reinsurance and corporate/other.