Financial leverage ratios

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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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
publicly announces the correct criteria for the calculation of the Company's financial leverage ratios.
Suzano Petroquimica Clarifies the Criteria Used for the Calculation of Its Financial Leverage Ratios
Goodwill impairments do affect financial leverage ratios, which is a key credit metric.
Fitch Publishes Goodwill Report for Life Insurers
Financial leverage ratios are expected to remain appropriate for the company's rating category, with interest coverage of 7x-10x and debt-plus-preferred leverage of about 30%.
S&P Affirms Protective Life Insurance and Related Units Ratings
As a result, Standard & Poor's expects no change in financial leverage ratios (defined as debt plus preferred as a percent of capitalization).
S&P Assigns AON Corp.'s Notes 'A+', on Watch Negative
Fitch believes Everest's operating leverage and financial leverage ratios are modest for the rating category.
Fitch Affirms Everest Re's IDR at 'A+' & IFS at 'AA-'; Outlook Stable
Best views RGA's debt servicing capabilities favorably, with cash flows supported by its consistently profitable operations and its financial leverage ratios remain within A.
A.M. Best Affirms Ratings of Reinsurance Group of America, Incorporated and Its Subsidiaries
Although the acquisition is not expected to raise financial leverage ratios outside of the triple-'B' range, fixed-charge coverage might be strained by operating performance of the consolidated group.
S&P CORRECT: White Mountain Insurance Group Ratings Remain on WatchNeg
The survey found financial leverage ratios for cash flow lending expand in the 3rd quarter.
Phoenix Lending Survey Results Shows "The Tale of Two Borrowers"
Financial leverage ratios are expected to remain appropriate for the rating category, with interest coverage of 9x-11x and debt-plus-preferred leverage of about 30%.
Standard & Poor's Affirms Protective Life Corp. and Related Units Ratings
Financial leverage ratios will increase following the issuance of these notes to approximately 32% of total debt-to-capital and 39% of debt-to-tangible capital.
A.M. Best Assigns Debt Rating to Markel Corporation's Senior Notes
Aon's financial leverage ratios are expected to improve in 2000 and 2001, Standard & Poor's said.
S&P Affirms 'AA' Ratings on Combined Insurance of America; sub

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