Adjusted Debt to Equity Ratio

Adjusted Debt to Equity Ratio is Total Liabilities divided by Total Equity and Treasury Stock. Total Liabilities is all money that is owed. Total Equity is the money the company has. Treasury Stock are stock buybacks.

A company with a Durable Competitive Advantage will have an Adjusted Debt to Equity Ratio of less than 80%. In this calculation, we are adding back the value of Treasury Stock to Total Equity. This calculation is only to be applied to companies that are NOT a financial institution. We do not apply this calculation to banks, investment brokers, and brokerage firms.

 

Equation

 

If the company is not a bank or any financial institution:

Adjusted Debt to Equity Ratio

My Financial Analysis of Stocks

  • Swapped Disney (DIS) for more ViacomCBS (VIAC) A couple of months ago, we sold our shares in Disney (DIS) in exchange for ViacomCBS (VIAC). Unfortunately for us, we had to take our meager profits in Disney and ...
    Posted Jan 17, 2022, 11:36 AM by Intelligent Investor
  • Archive: My Stock Holdings 2020 View My Analysis: My Stock Holdings 2020
    Posted Jan 23, 2022, 6:55 PM by Intelligent Investor
  • Archive: My Stock Research 2020 View My Analysis: My Stock Research 2020
    Posted Jan 23, 2022, 6:56 PM by Intelligent Investor
  • Buying the Dip in ViacomCBS (VIAC) and Sold Pfizer (PFE) A very big opportunity came today to buy ViacomCBS (VIAC) at a ridiculously low price. Unfortunately we had to sell Pfizer (PFE). Pfizer has been a big disappointment for us ...
    Posted Mar 29, 2021, 12:09 AM by Intelligent Investor
  • Accumulating ViacomCBS (VIAC) We believe there is a greater opportunity in ViacomCBS (VIAC). We have been accumulating the stock for the past year. Our analysis is a mere common sense. During the course ...
    Posted Jan 25, 2021, 5:25 PM by Intelligent Investor
  • Sold AXP, BRK.B, JPM, and WFC We sold all of our shares in American Express (AXP), Berkshire Hathaway Class B (BRK.B), J.P. Morgan (JPM), and Wells Fargo (WFC).American Express (AXP) - We just do ...
    Posted Jan 19, 2021, 7:53 PM by Intelligent Investor
  • We Have Bottomed, Next Stop Dow Jones 100,000 The bottom of this recession was on March 23, 2020, when the Dow Jone hit 18,214. This recession was short-lived, it only lasted about 3 months. Our Gross ...
    Posted Jun 8, 2020, 12:32 PM by Intelligent Investor
  • Archive: My Stock Research 2019 View My Analysis: My Stock Research 2019
    Posted May 21, 2020, 9:21 PM by Intelligent Investor
  • Archive: My Stock Holdings 2019 View My Analysis: My Stock Holdings 2019
    Posted May 21, 2020, 9:21 PM by Intelligent Investor
  • Another Dead Cat Bounce, We Haven't Bottomed Yet, Goldman Predicts S&P 2000 The Dow Jones has rallied to 22,327 over the past several days. However, we believe this is another dead cat bounce. We sold all our shares of United Health ...
    Posted Mar 30, 2020, 8:35 PM by Intelligent Investor
Showing posts 1 - 10 of 55. View more »