Dados B3 › Glossary

Glossary

Net debt / equity and gross debt / equity

How much the company owes in loans relative to shareholders' equity.

What it is

How much the company owes in loans relative to shareholders' equity. Shown on the stocks pages.

How Dados B3 calculates it

net debt ÷ equity; gross debt (short- and long-term borrowings) ÷ equity, both for the fiscal year.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Gross debt of R$ 600 million and equity of R$ 400 million: gross debt/equity = 1.5x.

What to watch for when reading it

• Small book equity after losses or buybacks pushes the ratio up without risk changing in the same proportion.

See also

• Net debt
• Equity/Assets and Liabilities/Assets

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.