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lee
I am looking at the analysis for MASC. It has no LT debt per the
posted May 02 '13 by lee
I am looking at the analysis for MASC. It has no LT debt per the financials, but the debt/equity calc is showing 42.2%? Have seen similar results on other stocks. Can you clarify? Thanks.

ALEX
MASC: Debt Ratio
posted May 03 '13 by alex
MASC: Debt Ratio
This is a good question and I can see where it came from - we have two "Debt Ratios", but they are based on different numbers.

Debt/FCF - Debt to Free Cash Flow analyses LT Debt and you are right, there is no LT debt therefore Debt/FCF is 0. Because this ratio is analyses Long Term Debt, it can be considered as a "long term" debt indicator.

Debt Ratio - is more "classic" and it shows the relationship between capital contributed by the creditors and owner's equity. In other words, ratio of Current liabilities to net worth. It should not exceed 80% in a healthy business. As you can see it is sort of "short term" ratio.

By the way, Current liabilities, as well as other items from financial statements, are available in the "Annual and Quarterly Data" section.

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