SRSCQ (Sears Canada) Debt-to-Equity: 1.78 (As of Apr. 2017)

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What is Sears Canada Debt-to-Equity?

Sears Canada SRSCQ -99.00% Debt-to-Equity is 1.78 as of Apr. 2017.

Sears Canada's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2017 was $3 Mil. Sears Canada's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2017 was $102 Mil. Sears Canada's Total Stockholders Equity for the quarter that ended in Apr. 2017 was $59 Mil. Sears Canada's debt to equity for the quarter that ended in Apr. 2017 was 1.78.

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 Sears Canada's Debt-to-Equity or its related term are showing as below:

SRSCQ's Debt-to-Equity is not ranked *
in the Retail - Cyclical industry.
Industry Median: 0.56
* Ranked among companies with meaningful Debt-to-Equity only.

Sears Canada  (OTCPK:SRSCQ) 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.

Sears Canada Debt-to-Equity Related Terms

Sears Canada Debt-to-Equity Historical Data

* Premium members only.

The historical data trend for Sears Canada'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.

Sears Canada Debt-to-Equity Chart

Sears Canada Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Debt-to-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.06 0.03 0.05 0.04 0.09

Sears Canada Quarterly Data
Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17
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 0.05 0.06 0.08 0.09 1.78

Sears Canada Debt-to-Equity Competitor Comparison

For the Department Stores subindustry, Sears Canada'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.

Sears Canada Debt-to-Equity vs Retail - Cyclical Industry

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

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


Sears Canada Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Sears Canada's Debt to Equity Ratio for the fiscal year that ended in Jan. 2017 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
=(2.807 + 12.592) / 168.55
=0.09

Sears Canada's Debt to Equity Ratio for the quarter that ended in Apr. 2017 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
=(2.977 + 102.404) / 59.239
=1.78

* 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 1.78 mean?
Sears Canada (SRSCQ) has a Debt-to-Equity of 1.78 as of Apr. 2017. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Sears Canada and its competitors.
Is Sears Canada's Debt-to-Equity too high?
Sears Canada's current Debt-to-Equity is 1.78. The Retail - Cyclical industry median Debt-to-Equity is 0.56. Sears Canada's value of 1.78 is 217.9% above this industry median.
How does Sears Canada's Debt-to-Equity compare to competitors?
Sears Canada's Debt-to-Equity of 1.78 can be compared against companies in the Retail - Cyclical industry. The industry median Debt-to-Equity is 0.56. Sears Canada's value of 1.78 is 217.9% 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 a Retail - Cyclical company?
The median Debt-to-Equity among Retail - Cyclical companies is 0.56, based on 1,024 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. Sears Canada's current Debt-to-Equity of 1.78 is 217.9% 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 Sears Canada and its competitors. For the Retail - Cyclical industry, the median Debt-to-Equity is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sears Canada's current Debt-to-Equity is 1.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sears Canada stock overvalued right now?
Sears Canada (SRSCQ) has a current Debt-to-Equity of 1.78. The current Debt-to-Equity is 1.78 and 217.9% above the Retail - Cyclical industry median of 0.56. 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 Sears Canada (SRSCQ), the current Debt-to-Equity is 1.78 as of Apr. 2017. 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.

Sears Canada Business Description

Address 290 Yonge Street, Suite 700, Toronto, ON, CAN, M5B 2C3
Sears Canada Inc is in the sale of goods and services through the Company's Retail channels. It comprised of one reportable segment, Merchandising. Which includes its full-line department, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. stores, and its Direct (catalog/internet) channel. It also includes service revenue related primarily to logistics services provided through the Company. Commission revenue includes travel, home improvement services, insurance, wireless and long-distance plans. Licensee fee revenue is comprised of payments received from licensees that operate within the Company stores.