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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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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Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Load Capacity Analysis of the High Transverse Contact Ratio Involute Gearing (Thesis), University in Rijeka, Rijeka
The objective in solving planetary gearing problems is usually to determine the number of turns of the driver required to produce one turn of the follower or, vice versa, the number of turns of the follower produced by one turn of the driver.
"I think much of our success is derived from the fact that we have focused on particular sizes, and we've said no to the very small or very large gears and no to the spiral bevels or nonparalleling gearing," he said.
Such gearing is more resistant to surface cracking of the nitriding, and offers excellent wear characteristics over a wide usage range and adequate torque-transfer characteristics.
Though gearing has been the primary beneficiary of shot peened ADI, other applications using this combination of materials and process are common, i.e., shot peening fillet radii on crankshafts and camshafts.
In addition, this premium lubricant exceeds ANSI/AGMA 9005-E02 Specification Annex D for minimum viscosity recommendations for open gearing in intermittent lubricant applications.