Formula
to calculate capital structure ratio:
Capital
Structure Ratio = long term debt / (shareholders equity
+ long term debt).
Capital
structure ratio definition and explanation:
The
capital structure ratio shows the percent of long term
financing represented by long term debt.
A capital
structure ratio
over 50% indicates that a company may be near their
borrowing limit (often 65%).
The capital structure ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The capital structure ratio is listed in our leverage
ratios.
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Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
The capital structure ratio
may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
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