How to get an accurate Debt/Equity Ratio

[bullbear39]

I believe an important criteria for valuing a company is the debt/equity ratio. However, in regard to banks in particular I find it's difficult to establish an accurate ratio for this. Would anyone care to shed some light on this?

Using CBA as the test case and the following data sources we see these discrepancies.

Yahoo Finance
Shows Total debt/equity: N/A

Reuters
Shows Total Debt to Equity: 354.01
And LT Debt to Equity: 24.42

Questions are;
1. What is the best global source to find an accurate debt/equity ratio?
2. How is the Reuters ratio to be read? Is CBA's debt 354 x it's equity?

Thanks.

 

[McLovin]

Questions are;
1. What is the best global source to find an accurate debt/equity ratio?

The company's annual report.

2. How is the Reuters ratio to be read? Is CBA's debt 354 x it's equity?

It's a %. 354% of equity.

(13,652+118,652)/37,287= 3.55

 

[luutzu]

yup, when in doubt, or not in doubt, open their annual report and do the ratio yourself.

with banks though... a high debt to equity is a good thing. Banks take deposits, which is considered a liability... but banks loan or invest it out at a higher rate than the interest they pay...

so becareful when interpreting these ratios.