Discover how to calculate free cash flow to equity to evaluate a firm's financial health, crucial for companies not paying ...

Financial leverage—total assets divided by common shareholder’s equity—indicates the degree to which the firm has been financed through debt as opposed to equity sources.

The debt-to-equity calculation is fairly straightforward: Divide a company's total liabilities by shareholders' equity to calculate the debt-to-equity ratio.

The other accounts that stock issuances affect have to do with shareholder equity. The common stock account increases by an amount equal to the number of shares multiplied by each share's par value.

This screen identifies companies with consistently high return on equity and filters out firms with high levels of debt, low margins and low asset turnover relative to industry medians.