leveraged company

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 ?
This is the most leveraged company to oil price in the whole group," Gheit said.
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.
UPL is a low leveraged company where its borrowing has remained a function of its working capital requirements.
British Seafood went into administration earlier this month after trade credit for the heavily leveraged company was withdrawn, and senior industry sources believe the sudden collapse of the [pounds sterling]324m group may have a knock -on effect on the rest of the industry.
Putnam said that the leveraged company funds' investment processes rely on fundamental research by analysing corporate balance sheets and capital structures to identify the securities with the greatest total return potential.
Meanwhile, Reserve Bank of India has said that bank exposure to Satyam is 'relatively small' as it is not a leveraged company.
When private equity takes a public company private, it will be a leveraged company," says Lahr.
Selling success then will be a function of individual capability rather than a leveraged company effort.
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.
The Commission's rationale for the new rule is that a highly leveraged company, with the accompanying fixed interest expense and future obligation to repay the principal, may be in a weakened financial position if there is an unfavorable change in the business climate.