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 ?
Consequently, financial leverage is expected to remain near ACGL's financial leverage ratio (FLR) of 19.
Palm Hills came fourth with a financial leverage ratio of 0.
The company said the amendment provides additional flexibility under the financial leverage ratio covenant, which is expected to allow to continue to operate its business in the near term without the need to raise additional capital from equity sales.
According to the firm, the index family is designed to measure high quality stocks in the global equity markets on the basis of their quality score, which is calculated based on three fundamental measures return on equity, accruals ratio and financial leverage ratio.
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.
Alleghany's financial leverage ratio (adjusted for unrealized net gains on fixed-income investments) was 22.
While PLC's traditional GAAP-based financial leverage ratio at 23% is consistent with industry norms, the high total financing and commitments (TFC) ratio at 1.
Next, because the financial leverage ratio must be reduced by 10%, and its denominator, owners' equity, must decline by 7.
ISV's Fitch-calculated financial leverage ratio (FLR) improved to 23% in 2016 (2015: 24%), However, ISV received an infra-group subordinated loan for EUR600 million in 3Q17.
However, Heliopolis Company for Housing & Development, which rely on over-drafting from banks to finance their obligations, have posted a financial leverage ratio that surpassed 1.
In compliance with regulatory measures by Central Bank of Kuwait (CBK), the financial leverage ratio of Markaz reached 0.
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.

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