A
highly leveraged company may have high P/E ratio because of lower net income caused by high interest expenses.
"With net debt of 5.17 times its EBITDA, Townsquare Media could be described as a
highly leveraged company," it says.
A
highly leveraged company can imply that it might have difficulty expanding in the future as creditors may want to avoid it.
It's already the most
highly leveraged company in the S&P 500, and it's already made massive cuts to its overhead in order to produce positive cash flow.
"We believe Ezz Steel will be one of the top beneficiaries from a cut in interest rates, being a
highly leveraged company with a debt to equity of 4.4% and net debt to equity of 3.5%.
"We are not a
highly leveraged company, we have low leverage."
"There is going to be tremendous pressures on every site to cut costs and pressure on the company to find ways to pay off the debt on what is a very
highly leveraged company.
They point out that if Express Scripts, whose annual revenue is less than half that of Caremark, were to make the acquisition, the result would be a
highly leveraged company bound to devoting considerable resources to paying off its debt for years to come.
* The likelihood of financial distress in the event of realized changes in key variables (such as changes in interest rates for a
highly leveraged company); or
The
highly leveraged company took a beating as it emerged from the dot-com disaster, losing tens of millions of dollars annually through 2004, according to the company's financial statements.
Because his employer is a
highly leveraged company owned by a Washington-based LBO firm, Stassen and the upper management deal regularly with banks and other lending institutions.
Nevertheless, this transaction makes Salton a
highly leveraged company. Is this leverage good or bad?
