Leverage Ratio

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Leverage Ratio

In risk analysis, any ratio that measures a company's leverage. One example of a gearing ratio is the long-term debt/capitalization ratio, which is calculated by taking the company's long-term debt and dividing it by its long-term debt added to its preferred and common stock. Another example is a simple debt-to-equity ratio, which is calculated by dividing total debt by total equity. Generally, companies with higher leverage as determined by a leverage ratio are thought to be more risky because they have more liabilities and less equity. A leverage ratio is also called a gearing ratio or an equity multiplier.
References in periodicals archive ?
Financial leverage ratio is calculated by dividing total debt, including debt discount, by EBITDA.
In compliance with regulatory measures by Central Bank of Kuwait (CBK), the financial leverage ratio of Markaz reached 0.
Aegon's gross financial leverage ratio stood at 30.
Although there may be a small increase in Ameriprise Financial s financial leverage ratio upon issuance, the pro forma impact on financial leverage, along with interest expense coverage, is expected to remain well within A.
MKL's pro forma financial leverage ratio (FLR) with Alterra is 26.
On financial leverage ratio, the report said in spite of this low ratio, to
Next, because the financial leverage ratio must be reduced by 10%, and its denominator, owners' equity, must decline by 7.
Financial leverage ratio (adjusted gross debt/EBITDAR) was 7,3x , compared to 6,7x at the end of 2014 and 6.
Aegon's decision to call the perpetual capital securities supports the company's target to lower its gross financial leverage ratio to within a range of 26 to 30%.
Although there may be a small increase in Lincoln s financial leverage ratio upon issuance, the pro forma impact on financial leverage is expected to improve in the medium term given Lincoln s plans to retire the 2014 maturing debt.
Alleghany's financial leverage ratio (adjusted for unrealized net gains on fixed-income investments) was 22.
Although there may be a small increase in Genworth s financial leverage ratio upon issuance, the pro forma impact on leverage is essentially neutral in the medium term given plans to call the 2015 maturing debt.

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