If you need to have between a 4 % or 6 % distribution rate — let's say I have $ 1 million and I want to spend $ 50,000 a year, then I show that a 30 % debt to
asset ratio actually can add value.
Not exact matches
The rates and fees provided by CommonBond evaluation are estimates and the rates
actually provided by CommonBond may be higher or lower depending on your complete credit profile, and income /
asset considerations including but not limited to loan to value and debt to income
ratios.
While one might put the brakes on this expectation after looking at the 175 % payout
ratio, Enbridge's reported EPS numbers are largely impacted by depreciation on
assets that may not be depreciating at the reported rate (many of these pipelines
actually become worth a lot more over time).
It
actually has some good points — equity's currently at a nice 10.2 % of total
assets, and the loan - to - deposit
ratio «s now at 120 % (just creeping into acceptable territory) & falling.
Cash
actually becomes a penalty in the equation because it increases the denominator (cash is an
asset) and lowers the Gross Profitability
Ratio.