| A Stock’s Debt/Equity ratio is calculated by dividing a company’s total liabilities by its shareholder equity. Since this is using the Trailing Twelve Months (ttm), this looks at the total debt & equity levels of the company based on their past year, vs. looking at only the most recent quarter or at only long-term debt/equity. A lower rating is advantageous, as it shows a company is more responsible with its debts, although it is important to be sure that when comparing the Debt/Equity (ttm) that you are looking at companies that are highly similar, as different industries require varying levels of debt. |