Long-Term Debt-to-Equity Ratio

Long-term debt-to-equity ratio is a measure of the balance between the debt and equity in a firm's long-term debt structure. This ratio objective, like the debt-to-equity ratio, is to examine the balance between creditors and owners in the debt structure of the firm.

The equation for long-term debt to equity ratio is

L-T Debt to Equity ratio = long-term debt/stockholder's equity