How do you calculate the level of debt in my portfolio?

For the health calculation in your portfolio (your portfolios level of debt), we use a weighted average of the debt to equity ratios using the market value of the stock as the weight. So instead of just averaging the debt to of all your holdings, we weight them based on the value they represent to your total portfolio.

Some users may not understand why they are getting a high debt value for their portfolio when many of their holdings have very low debt. In these cases, there may be one or two companies that have a high market value relative to your total portfolio value, which has high debt and therefore may be skewing the results.

 

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