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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Capitalization ratios

References in periodicals archive ?

The notes will be treated as 0% debt in financial leverage ratios, given that the instruments are akin to deeply subordinated debt that has the key features of perpetual preferred securities, including permanence and deferrable coupons that are non-cumulative.

Fitch Rates QBE's Perpetual Capital Notes Final 'BBB-'

Our view of financial flexibility (the ability to raise additional cash or capital relative to potential needs) has also improved to adequate now that actual overdraft usage has reduced compared to earlier years, and given that interest coverage and financial leverage ratios are now expected to remain at levels within our normal tolerances.

S&P: Al Buhaira National Insurance Co. ratings affirmed at 'BB+'; outlook stable

DoubleDragon said its financial leverage ratios remains healthy with debt-to- equity at 1.

Doubledragon borrows P5B for mall expansion

The cost of this new borrowing via private placement of debt was not disclosed but DoubleDragon said its financial leverage ratios remained healthy with debt to equity at 1.

DoubleDragon sells P5B debt notes

However, exams "Turnover ratios 1, Turnover ratios 2, Financial Leverage ratios 2"does not have a definite principle for their encompassed factors as there is more than 1 minimum answer available.

A novel application of grey principal component analysis to determine stockholder's approach towards financial ratios

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.

United States : A.M. Best Assigns Debt Rating to Argo Group US, Inc. s Senior Notes

UnitedHealth's financial leverage could rise slightly immediately following the offering, but according to Fitch, the company's key financial leverage ratios, including debt-to-EBIDA, EBITDA-to interest, and debt-to-total capitalisation, will continue to hover around recent levels for the foreseeable future.

-Fitch expects to set A- rating to UnitedHealth's planned note issue

Goodwill impairments do affect financial leverage ratios, which is a key credit metric.

Fitch Publishes Goodwill Report for Life Insurers

The notes will be treated as 0% debt in financial leverage ratios, given that these instruments are akin to deeply subordinated debt that have the key features of perpetual preferred securities, including permanence and having deferrable coupons that are non-cumulative.

Fitch Rates QBE's Proposed Perpetual Capital Notes 'BBB-(EXP)'

The cost of this new borrowing was not disclosed but DoubleDragon said its financial leverage ratios remained healthy with debt to equity at 1.

DoubleDragon raises P5B

As such, the new issue is not likely to have a material impact on financial leverage ratios, according to the analysts.

-Fitch rates Friends Provident's GBP500m securities at BBB+

The revision in UNH's and its subsidiaries' Outlooks to Stable from Negative reflects Fitch's belief that UNH will maintain average (on a six-quarter rolling basis) financial leverage ratios of 40% and debt-to-EBITDA below 2.

Fitch Rates UnitedHealth's Senior Note Issuance 'A-'; Affirms IFS Ratings; Outlook to Stable