Long-term debt/capitalization

Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder equity.

Similar financial terms

Long-term bonds
Bonds with a maturity of more than 12 years.

Current portion of long-term dept
Those liabilities that are payable within the next 12 months, including accounts and taxes payable, and the current portion (12 months' payments) of notes payable and current liabilities.

Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.

Long-term liabilities
Amount owed for leases, bond repayment and other items due after 1 year.

Long-term financial plan
Financial plan covering two or more years of future operations.

Long-term debt ratio
The ratio of long-term debt to total capitalization.

Long-term debt
An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.

Long-term assets
Value of property, equipment and other capital assets minus the depreciation. This is an entry in the bookkeeping records of a company, usually on a "cost" basis and thus does not necessarily reflect the market value of the assets.

Long-term
In accounting information, one year or greater.

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Did you know?

Equitize a Margin Call

An event whereby a previously unsatisfied margin call is eliminated by an effective transfer of ownership. In 1998, Long Term Capital Management transfered a portion of ownership to its creditors. In some respects, it was a debt for equity swap.


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