Debt leverage

Debt leverage

Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money.
References in periodicals archive ?
Key among these enhancements is an improved debt leverage ratio, higher working capital amounts, profit margins and substantially higher earnings per share.
Debt leverage could be further reduced in early 1998 through the potential conversion of $172 million subordinated notes to equity.
Based on its high post-LBO debt leverage, Fitch expects KMI's senior unsecured debt (to be equally secured with the buyout debt) to fall in the 'BB' rating category.
Moreover, the equity issuance will reduce the company's debt leverage significantly.
At the same time, Brasil Ferrovias and its subsidiaries' credit quality should benefit from the acquisition as ALL's stronger financial position will result in lower consolidated debt leverage for the acquired companies.
Automotive debt leverage has fallen to a conservative 21% at Sept.
Debt leverage (as measured by debt to cash flow) in particular is expected to remain weak for the rating category over the next several years as incremental capital expenditures are financed with debt before equity is issued and tariffs are adjusted.
The rating downgrade follows D&P's review of First Union's somewhat weakened financial profile and need to reduce debt leverage to more moderate levels.
The company indicates that post-transaction debt leverage will approximate 56%, and debt-to-EBITDA will approximate 4.
The rating reflects the strong operating performance of the company, a moderate increase in debt leverage, and strategic advantages from the Owen acquisition.
The rating action also reflects the continued stable performance of NOR's core electric and gas utility business and the company's progress in reducing debt leverage and increasing financial flexibility since its exit from bankruptcy in November 2004.