common stock ratio

Common Stock Ratio

The ratio of the value of a company's common stock to its total capitalization, expressed as a percentage. A common stock ratio is an expression of how much a company is financed by equity. A high ratio indicates that the company finances a great deal of its operations through equity and, perhaps, is averse to debt. This signifies a conservative financial plan, though some analysts question whether or not this is beneficial.

common stock ratio

The portion of a firm's capitalization that represents owner(s) equity. A relatively high common stock ratio is the mark of a conservatively financed company.
References in periodicals archive ?
31x, and leverage should moderate as the common stock ratio improves to 46 percent of capitalization.
The Restated Rights Agreement restores the initial one Right per share of common stock ratio of the original agreement, but is subject to adjustment following the Restatement Date as provided in the Restated Rights Agreement.
06x, and leverage should moderate as the expected common stock ratio is 46 percent of capitalization.