Financial leverage ratios

Financial leverage ratios

Common ratios are debt divided by equity and debt divided by the sum of debt plus equity. Related: capitalization ratios.

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.
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Financial leverage ratios will increase following the issuance of the senior notes to approximately 28% of total debt-to-capital and 32% of debt-to-tangible capital.
publicly announces the correct criteria for the calculation of the Company's financial leverage ratios.
Goodwill impairments do affect financial leverage ratios, which is a key credit metric.
Financial leverage ratios are expected to remain appropriate for the company's rating category, with interest coverage of 7x-10x and debt-plus-preferred leverage of about 30%.
As a result, Standard & Poor's expects no change in financial leverage ratios (defined as debt plus preferred as a percent of capitalization).
Fitch believes Everest's operating leverage and financial leverage ratios are modest for the rating category.
Best views RGA's debt servicing capabilities favorably, with cash flows supported by its consistently profitable operations and its financial leverage ratios remain within A.
Although the acquisition is not expected to raise financial leverage ratios outside of the triple-'B' range, fixed-charge coverage might be strained by operating performance of the consolidated group.
The survey found financial leverage ratios for cash flow lending expand in the 3rd quarter.
Financial leverage ratios are expected to remain appropriate for the rating category, with interest coverage of 9x-11x and debt-plus-preferred leverage of about 30%.
Financial leverage ratios will increase following the issuance of these notes to approximately 32% of total debt-to-capital and 39% of debt-to-tangible capital.
Aon's financial leverage ratios are expected to improve in 2000 and 2001, Standard & Poor's said.

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