Common Equity to Total Capital

Common Equity to Total Capital (CETC) is a financial metric that evaluates a company's financial leverage. It measures the percentage of a company's total capitalization that is made up of common equity.

The formula for CETC is as follows:

CETC = Common Equity / (Common Equity + Preferred Equity + Debt)

In this formula, Common Equity includes outstanding shares and retained earnings, while Preferred Equity includes any preferred shares and related dividends. Debt includes both short-term and long-term liabilities.

A higher CETC ratio implies that a larger percentage of the company's capitalization comes from equity financing, which can indicate lower financial risk and higher financial stability. Conversely, a lower CETC ratio may indicate a greater reliance on debt financing, which can increase financial risk and increase the company's vulnerability to changes in interest rates.

Additional Details

Metric Name	Type	Default Period Type
common_to_cap	fin_metric	FY

Formatting Details

Data Format	Display Format	Unit
float	perc	percentage