Policy & Guidance

Interim Economic Guidance for Water Quality Standards

DER = LTL ÷ OE

Where:	DER	=	Debt/Equity Ratio
	LTL	=	Long-Term Liabilities (long-term debt such as bonds, debentures, and bank debt, and all other noncurrent liabilities such as deferred income taxes)
	OE	=	Owner Equity (the difference between total assets and total liabilities, including contributed or paid in capital and retained earnings)

	Three Most Recently Completed Fiscal Years
	19 ___	19 ___	19 ___
LTL	$________	$________	$________	(1)
OE	$________	$________	$________	(2)

DER [(1)/(2)]				(3)

Considerations:

Is the most recent year typical of the three years? __ Yes __ No

(If not, you might want to use an earlier year or years for the analysis)

How does the Debt to Equity Ratio compare with the ratio for firms in the same business?