@chadsandstedt

Are you the founder of Analystforum?

Thank you for your detailed explanation.

What if a company has Long term debt to equity ratio of -660%, does it mean that this company make a loss from the long term debt which it has borrowed.

Letâ€™s say the share capital of the company are 100, in order for them to have a negative D to E ratio, their profit of the year plus retained earnings must be a negative figure, right?

Therefore, for a company to have a negative D to E ratio of -660%, the company much have long term debt of 1,980 and the total equity must be ( 100 share capital + -400 reserves).

The calculation would be like 1980/100+(-400)=6.6=660%

Am I right?

Thank you very much.