Long-Term Debt/Capitalization Love Machine 16 years ago Long-Term Debt/Capitalization Shows the financial leverage. Represents long-term debt as a share of available capital. Formula: long-term debt divided by the sum of common stockholder equity, preferred stock and long-term debt. Recommended for you: Capitalization Table Long-Term Debt to Equity Ratio Debt/Equity Ratio Capitalization Ratios