long-term debt to capitalization ratio
Definition
The ratio that was adapted from the debt-to-equity ratio. It determines a company's financial weight. Investors can assess risk exposure. Dividing long-term debt by the available capital determines the long-term debt to capitalization ratio.
long-term debt to capitalization ratio = long-term debt / (long-term debt + preferred stock + common stock)
long-term debt to capitalization ratio = long-term debt / (long-term debt + preferred stock + common stock)
