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 ?
The financial crises born in over-leveraged, developed markets of the past few years have helped spur interest in Islamic banking and finance, primarily in under-leveraged emerging markets.
Bruin Sports Capital will continue to look for other high-value, under-leveraged assets to enhance their position as leading marketers and operators in the sports, entertainment and lifestyle industries.
We believe that housewares is still under-leveraged in the grocery world generally and that there is still room for growth," says Perry Reynolds, vice president, global trade development for the International Housewares Association, based in Rosemont, 111.
2x EV/EBITDA (based on 2014 estimates), Mubasher said, assessing the company as under-leveraged with a net debt-to-EBITDA ratio of 0.
Banks currently sit on millions of records with this information--and it mostly sits unused and under-leveraged.
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.
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
Despite its great potential, the tourism sector seems to be under-leveraged by the government.
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.