Debt to Total Capitalization
The Debt to Total Capitalization is calculated by dividing Debt by Total Capitalization
This is metric is used to evaluate how a company is funding its operations - with equity (IE by selling shares) or with debt (IE by taking out loans). The metric represents the percentage of total capitalization made up by debt. Total capitalization is calculated as the total long-term debt and all types of equity, such as bonds that a company has.