leveraged company

Leveraged company

A company that has debt in its capital structure.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
A highly leveraged company may have high P/E ratio because of lower net income caused by high interest expenses.
Market analysts felt that Renaissance has been a highly leveraged company. Will this transaction enable you to de- leverage the company substantially?
"With net debt of 5.17 times its EBITDA, Townsquare Media could be described as a highly leveraged company," it says.
Historically, and in Fitch's forecast for CPG after its large construction program, CPG has been a run-rate 3.5x leveraged company.
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.
To ensure that the amount of earnings to be invested is similar to a no-leveraged case, the following relationship must hold in order to determine the dividend payout ratio [[delta].sub.L] of a leveraged company:
"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%.
"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.
We are the least leveraged company, Seth points out.