Sentences with phrase «equity ratio means»

A low debt to equity ratio means lower risk to investors, since it means there is less debt relative to the available equity.

Not exact matches

Hedge funds and private equity funds saw the potential to corner this market and began offering much higher loan to value ratios, meaning they would lend as much as 80 percent of the value of the property.

A high return on equity usually means that the company has an above - average financial operating ratio and can often fund projects internally.

As long as your debt - to - income ratio is low, however, and you have a larger equity position — meaning you can afford a larger down payment — you stand a good chance of getting approved for a loan with a decent interest rate.

Debt / equity ratio simply means dividing your total debt by your total equity.

Dynamic asset allocation means that your yin and yang of equities and bonds is no longer fixed by some permanent cosmic ratio.

[2] The ratio of mean home - equity wealth to mean net worth for homeowners was 20.4 % in 2013 and 19.1 % in 2016; see «Changes in U.S. Family Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances,» Federal Reserve Bulletin, September 2017 (Vol.

As a thumb rule, invest in companies with debt to equity ratio less than 1 as it means that the debts are less than the equity.

The standard leverage ratio is 5 - 9 to 1, meaning that for every $ 1 in equity on the books, REITs borrow $ 5 - 9 to purchase mortgage - backed securities.

Less than half of all equity funds have beaten the SP500 over their life times; in fact, one in four have not even beaten the T - Bill, which means their Sharpe Ratios are less than zero!

· Your loan - to - value ratio must be greater than 80 percent — meaning you have less than 20 percent in home equity.

Generally, as a firm's debt - to - equity ratio increases, it becomes riskier A lower debt - to - equity number means that a company is using less leverage and has a stronger equity position.

To help you with your investing and financial terminology, let's take a look at what this ratio is, what it means, how to calculate it and the importance of understanding a long term debt to equity ratio.

High Loan to Value ratio means that borrowers only command small equity which might not suffice in the event that the property is auctioned off.

That means you can have a lower credit score and less home equity than you'd need for a conventional loan and, in some cases, a higher debt - to - income ratio.

Debt - to - equity ratio of 0.25 calculated using formula 2 in the above example means that the company utilizes long - term debts equal to 25 % of equity as a source of long - term finance.

A debt - to - equity ratio of 0.32 calculated using formula 1 in the example above means that the company uses debt - financing equal to 32 % of the equity.

Debt - to - equity ratio of 0.20 calculated using formula 3 in the above example means that the long - term debts represent 20 % of the organization's total long - term finances.

Before I start discussing about the meaning and significance of debt to equity ratio, the best place to start is to define financial ratio.

Gearing is a means of measuring financial leverage, specifically it is the ratio of leverage to equity.

When I asked for the ratio of equity in your portfolio, I meant your overall portfolio including PF, FDs, insurance policies, Bonds, NPS, etc..

That means I will be paying down on my home equity loan since I can take control of my tax and insurance escrow when my total debt - to - value ratio is 80 %.

Some recent private equity deals are even dipping below a one - to - one ratio, bankers say, meaning the company, at least initially, will not generate enough cash to make interest payments.

The PE ratio, or cap rate, at which a common stock sells in an OPMI market, has no particular meaning for a company in - creasing its equity base through retaining earnings.

Historically it has been mean reversion of valuation ratios like price to book and price to earnings which have had the greatest effect on long term equity returns.

Your down payment, plus the amount you've paid toward your principal, PLUS an increase in your home's value can bring your loan to value (LTV) ratio to 80 % (meaning you have 20 % equity).

Lenders must now apply the same restrictions for high - ratio mortgages to the entirety of their insured mortgage books, regardless of their equity, meaning the following product types will no longer qualify for portfolio insurance:

As long as your debt - to - income ratio is low, however, and you have a larger equity position — meaning you can afford a larger down payment — you stand a good chance of getting approved for a loan with a decent interest rate.

The 8.3 million include homeowners with a loan to value (LTV) ratio from 90 to 110 percent, meaning they have between 10 percent positive equity and 10 percent negative equity.

[2] The ratio of mean home - equity wealth to mean net worth for homeowners was 20.4 % in 2013 and 19.1 % in 2016; see «Changes in U.S. Family Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances,» Federal Reserve Bulletin, September 2017 (Vol.