What does debt-to-equity mean?

How much debt the company carries for every dollar of shareholder equity.

How do you interpret debt-to-equity?

Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.

How does debt-to-equity compare across companies?

Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.

MSCI MSCI Debt-to-equity

Discontinued — last reported Q3 '18

Debt-to-equity at other companies

S&P GlobalSPGI

0.4×0.0×

Moody'sMCO

2.4×+0.5×

Nasdaq, Inc.NDAQ

0.8×-0.1×

BlackrockBLK

0.3×0.0×

Apollo Global ManagementAPO

0.7×+0.1×

Ameriprise FinancialAMP

0×0.0×

Other financials

Income statement

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Revenue$850.8M+14.1%

Gross profit$709.0M+16.4%

Operating income$456.9M+21.2%

Net income$406.0M+40.7%

EPS (diluted)$5.53+49.1%

Balance sheet

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Cash & equivalents$385.3M+6.8%

Total debt$6.6B+40.1%

Total equity-$2.8B-189%

Total assets$5.5B+3.8%

Cash flow

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Operating cash flow$306.8M+1.7%

CapEx$2.8M-75.9%

Free cash flow$304.0M+4.8%

Valuation

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Market cap$0-10.2%

Profitability

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Gross margin82.9%+0.7pp

Operating margin55.4%+1.8pp

Net margin40.7%+1.7pp

Returns & leverage

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Return on equity113.8%—

Current ratio0.9×0.0×

Where this comes from

Calculated from MSCI’s reported figures.

total debt/total stockholders equity=6.8×

Based on the most recent quarter.

The official record: MSCI’s 10-Q, filed November 2, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does debt-to-equity mean?: How much debt the company carries for every dollar of shareholder equity.
How do you interpret debt-to-equity?: Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.
How does debt-to-equity compare across companies?: Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.