Long Term Debt To Capital Ratio Formula in Excel

Understanding Long Term Debt To Capital Ratio

The Long Term Debt To Capital Ratio formula in Excel (with MarketXLS) helps you determine how much of a company’s capital is financed through its long-term debt. This ratio is a crucial metric for investors looking to understand a company’s financial leverage and risk profile. By monitoring this ratio, you can:

• Evaluate a firm’s debt strategy
• Compare leverage across different companies and market sectors
• Assess long-term financial stability

? Pro Tip: A lower long-term debt to capital ratio often signals a more solid financial structure, whereas a higher ratio could indicate greater financial risk.

Syntax and Parameters

Use the following syntax to call the LongTermDebtToCapital function in Excel:

=LongTermDebtToCapital(Symbol)

Return Value

• Returns a numeric value representing the ratio of a company's long-term debt to its total capital.
• Returns "NA" if the Symbol is invalid or if an error occurs (e.g., license issues or network errors).

?? Note: This function relies on real-time or on-demand data. Ensure your MarketXLS license is valid and your internet connection is stable for accurate results.

Examples and Usage

Basic Example

To get the long-term debt to capital ratio for Microsoft:

=LongTermDebtToCapital("MSFT")

Index Symbol

Fetch the ratio for the S&P 500 index:

=LongTermDebtToCapital("^SPX")

Options and Crypto

Analyze an options contract for Microsoft or a cryptocurrency pair:

=LongTermDebtToCapital("@MSFT 110122C00020000")
=LongTermDebtToCapital("BTCUSD:DEFAULT")

? Pro Tip: Use cell references to change symbols dynamically. For instance, if A1 contains "MSFT", then use =LongTermDebtToCapital(A1) for quick updates you can drag down across multiple rows.

Common Questions

1. What if I get “NA” as a return value?

   • The function returns "NA" if the symbol is invalid, your license is invalid, or a network/connection error occurs. Double-check the ticker symbol and ensure your MarketXLS subscription is active.

2. Does the function work for international equities or ETFs?

   • Yes. You can use various symbols, including international tickers and market indices, as long as MarketXLS provides data for them.

3. Are there any performance considerations?

   • Each function call fetches data on demand. For large spreadsheets, consider limiting frequent recalculations or using Excel’s manual calculation mode to optimize performance.

4. Is there a difference between “Long Term Debt To Capital Ratio” and “Debt To Equity Ratio”?

   • Yes. Long Term Debt To Capital Ratio focuses on total capital (equity + long-term debt), whereas Debt To Equity Ratio compares debt specifically to shareholders’ equity.

5. How often does this data update?

   • It depends on MarketXLS and the data provider’s update schedule. Typically, the function retrieves the most recent available data.

?? Note: Always verify critical financial metrics through multiple sources when making investment or trading decisions.