Debt-to-Capital Ratio: Definition, Formula, and Example.

What is the Debt-to-Capital Ratio? The debt-to-capital ratio is a financial ratio that measures a company’s debt relative to its total capital. The debt-to-capital ratio is used to assess a company’s financial leverage. Formula The debt-to-capital ratio is calculated by dividing a company’s total debt by its total capital. Example For example, if a company … Read more

Idiosyncratic Risk: Why a Specific Stock May be Risky Right Now.

A specific stock is risky right now due to idiosyncratic risk. Which is the closest synonym for the word idiosyncratic? There is no single word that is a perfect synonym for “idiosyncratic,” but some close options include “unpredictable,” “unusual,” “unconventional,” and “individual.” Is idiosyncratic risk priced? There is no definitive answer to this question, as … Read more