leveraged company

(redirected from Leveraged Companies)

Leveraged company

A company that has debt in its capital structure.

Leveraged Company

A company that uses any debt to help finance its operations. Most companies are leveraged to some degree, but others take on so much debt they have difficulty servicing it and may file for bankruptcy. Highly leveraged companies often have more volatile profits than other companies. Some analysts, however, dispute the idea that leverage (or the lack of it) affects a company's performance in any way. See also: Capital Structure, Capital Structure Irrelevance Principle.

leveraged company

A company that uses borrowed money to help finance its assets. Leveraged companies often have more volatile earnings than firms that rely solely on equity financing. This volatility is offset, however, by the possibility of a higher return to stockholders if the firm is able to earn more on its assets than the cost of the money used to finance those assets.
References in periodicals archive ?
She will help Miller Buckfire become an even more formidable leader in advising highly leveraged companies.
Leveraged lending jumped 49 per cent to $140 billion as riskier, more indebted leveraged companies focused on amending and extending existing loans and refinancing them in the high-yield bond market when possible.
TMK remains one of the most leveraged companies in the Russian metals & mining universe, and we expect 2011E LTM net debt/EBITDA of 3.
While many of these highly leveraged companies have generated free cash flow through the downturn, these companies will remain dependant on external sources of capital, requiring refinancing/negotiating with lenders.
Putnam Capital Spectrum Fund and Putnam Equity Spectrum Fund will both be managed by veteran portfolio manager David Glancy, who joined Putnam earlier this year after two decades of specialising in industries of leveraged companies at Andover Capital and Fidelity Investments.
While equity markets around the world have experienced a tumultuous quarter, Sharia investors continue to be shielded to some extent by the exclusion from their portfolios of financial stocks and other highly leveraged companies, which do not satisfy the strict compliance criteria associated with Islamic law,"said Standard & Poor's Index Services vice president Alka Banerjee.
The action reflects Moody's concern that ''Daiei's recovery of earnings in the retail business will be further restrained while Japanese banks' support toward highly leveraged companies will be weakening after Mycal Corp.
Much of the firming to date has been selective and directed toward companies perceived to face an uncertain future in the new economic environment and to leveraged companies that are vulnerable to a period of slowing sales and profits.
Highly leveraged companies, whether profitable or not, will be affected the most by this provision.
A recent survey by Kohlberg Kravis & Roberts, a major force in the LBO movement, indicates tax revenues are not diminished by highly leveraged companies.
He added that despite this, highly leveraged companies and oil based stocks performed better on Tuesday.
Conclusion: The ongoing rise in external debt suggests that the debt market continues to reopen for Russian companies, which is positive for the Russian market in general and highly leveraged companies in particular.