underleveraged

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Underleveraged

Describing a company with too little debt. While it sounds strange, a company may be underleveraged because interest on bonds are usually tax deductible for the issuing company; thus, a bond issue can create higher earnings per share for stockholders. There is no metric for determining when a company is underleveraged and investors decide on it based on their personal perceptions.

underleveraged

Of, relating to, or being a firm that has insufficient debt in its capital structure. Because bond interest is deductible for tax purposes and is generally fixed in amount for a long period of time, some use of debt can often result in greater earnings per share for stockholders. Determining whether a company is underleveraged is usually a matter of opinion.
References in periodicals archive ?
However, many companies have little visibility into their external spend in a detailed and holistic manner; it is fragmented, managed in silos by disparate stakeholder groups, and under-leveraged as a result.
But our headquarters are based here, and there's a massive amount of talent that's under-leveraged.
Finally, in the fifth part of our strategy, we've identified parts of the portfolio that were under-invested or under-leveraged.
Banks currently sit on millions of records with this information--and it mostly sits unused and under-leveraged.
Existing clients are your best -- and often most under-leveraged -- source of referrals.
I have yet to find a long-term care community that doesn't have at least five under-leveraged facets of its marketing system.
The Central Service Department is an integral and yet often under-leveraged ally in the fight against HAIs," said Susan Adams, Executive Director of IAHCSMM.
to help it raise long term debt financing "in order to access the record-low interest rates and to optimize the company's under-leveraged position.
If we take an optimistic stance and assume a relatively stable market, our top picks are Raspadskaya Co a highly profitable, under-leveraged pure coking coal producer Co and KTK, a pure steam-coal producer with good production growth and a cut-clear strategy to diversify its export sales by raising HVA production
For most carriers their loyalty program is an under-leveraged asset," said consultant Scot Hornick.
Domestically, I think T20 at Edgbaston is under-leveraged and we have to exploit that," Povey said.
Current clients are our most under-leveraged source of new business.