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Thanks, Mike and JustMee01, that helped clear up a lot. I am still unclear, though, about certain types of debt. In the article referenced above, under total current liabilities there is an Other category. Why are these costs not included in any of the calculations? Is debt, for these purposes, only considered long-term debt?

I tried applying this to a company I am considering investing in.
Looking at Huron Consulting's balance sheet for 08', they list

Non-current liabilities (and break this down as follows- Deferred compensations and other liabilities, Capital lease obligations, net of current portion, Bank borrowings, Deferred lease incentives).

When calculating Net Debt and Debt to Equity, would I include the Total Non-current liabilities or are some of these non-interest bearing? In other words, does debt for these purposes only refer to Bank borrowings?

Also, in regard to debt-to-equity ratio, is there anywhere to find out what is considered a "solid" ratio, one that would make you feel comfortable (other than zero, which is obvious), and what the cutoff is? For example, the above referenced article states the current ratio should be at least one, preferable higher but does not offer such a cutoff for debt-to-equity.

Thanks for all your feedback!
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