Sentences with phrase «equity ratio because»

This can cause an inconsistency in the measurement of the debt - equity ratio because equity will usually be understated relative to debt where book values are used.

From the perspective of companies, it is therefore important to measure the debt - to - equity ratio because capital structure is one of the fundamental considerations in financial management.

Banks, for example, tend to have very large debt - to - equity ratios because they fund short - term loans by issuing debt.

Not exact matches

Software companies usually sell at larger p / e ratios because they have much higher growth rates and earn higher returns on equity, while a textile mill, subject to dismal profit margins and low growth prospects, might trade at a much smaller multiple.

When borrowers request a loan for an amount that is at or near the appraised value, and therefore a higher loan - to - value ratio, lenders perceive that there is a greater chance of the loan going into default because there is little to no equity built up within the property.

Private equity was tempted to launch a takeover blitz at a debt - to - cashflow ratio of 5.4 because debt was made so cheap.

The debt / equity ratio is very high, because Clorox has practically no equity.

The second requirement is an important one, because a lot of homeowners forget to keep track of their equity / loan - to - value ratio.

You will have the assets, receivables, and inventory, but the bank still may not increase your line of credit because your equity base is insufficient to keep your leverage ratio within the bank covenant.

The P / E ratio is used widely because it is straightforward and makes intuitive sense: as an equity owner you are entitled to the residual earnings of the company after expenses, interest and taxes.

KKR and Rhone plan to use a conservative gearing ratio compared with traditional private equity investments because wine is an agricultural industry subject to seasonal conditions and fluctuating earnings.

Paying off credit card debt with a personal loan or home equity loan can improve your score because it reduces the utilization ratio of your revolving accounts.

Our belief is that US equity markets remain overvalued, even if forward P / E ratios look attractive at the moment, because the tax cut will only provide a one - time boost to earnings.

Investors find the P / B ratio useful because the book value of equity provides a relatively stable and intuitive metric that can be easily compared to the market price.

The second requirement is an important one, because a lot of homeowners forget to keep track of their equity / loan - to - value ratio.

Because it includes all (total) assets (assets funded by debt and equity) it is a profitability ratio that interests both creditor and equity stakeholders.

Expense ratio plays a decisive role in debt funds, because they do not generate returns as high as equity funds.

Spitznagel is a specialist in tail risk, and so the most intriguing part of Spitznagel's papers is his demonstration of the utility of the equity q ratio in identifying «susceptibility to shifts from any extreme consensus» because «such shifts of extreme consensus are naturally among the predominant mechanics of stock market crashes.»

i cant even get a Home Equity Loan, because my DEBT to Income Ratio is too high, and i can not reduce it @ these Interest RATES!

The «good» companies underperform because the market overestimates their future growth and future return on equity and, as a result, accords the stocks overvalued price - to - book ratios; the converse is true of the «poor» companies.

Your LTV (or debt to equity) ratio on the property stays in tact because the equity from your real property is NOT being used to fund the loan, thereby preserving flexibility if the downturn in the market occurs and the property would need to be sold.

If you look at the equity curve you can see that two things: 1) When the market became completely chaotic the system lost more trades than usual but it never resulted in a huge draw down because of the favorable risk reward ratio of 1:4 (or better).

The second requirement is an important one, because a lot of homeowners forget to keep track of their equity / loan - to - value ratio.