Sentences with phrase «financial leverage»
Financial leverage refers to the practice of using borrowed money, also known as debt, to potentially increase the potential return on an investment. By using debt, individuals or companies can amplify the profitability or losses of their investments. It's like using a financial tool that can magnify gains or losses. Full definition
It proposes a range of financial leveraging mechanisms to help ensure the required levels of investment are available.
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An increase in financial leverage should soon result in an increase in operating margin!
Your investments should offer you a way to gain financial leverage with your money.
This sector tends to have high financial leverage, which is a concern if leverage is too high or when lending rates rise.
Low financial leverage as reflected by low interest cost in relation to earnings available to pay interest.
If you're interested you can read our article about financial leverage and the time value of money.
The portfolio contains high - quality companies that employ better governance and disclosure, more conservative accounting, less financial leverage, and «best - in - class» management.
We've also discussed the ability to take policy loans from permanent life policies in order to create financial leverage and maintain the velocity of your money.
Investors soon purchased stocks on margin, which is the borrowing of stock for the purpose of gaining financial leverage.
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There are those with bad banking systems and too much financial leverage, and there are those with too much industrial / commodity capacity.
As well, I hope you come out of this reading with a thorough understanding of what financial leverage it, and what considerations should be made before using it.
Our investment research is focused on high - quality companies that have sustainable competitive advantages, conservative financial leverage and strong management.
So the death benefit is there from day one, which is huge financial leverage dollar for dollar, when you consider you only put a fraction of money into the policy.
So the death benefit is there from day one, which is huge financial leverage dollar for dollar, when you consider you only put a fraction of money into the policy.
That makes us avoid financial leverage, and to a lesser extent operating leverage.
In fact, a surplus of opportunities and financial leverage make it attractive for anyone looking to live by day trading forex.
A «quality» style of investing emphasizes companies with high returns, stable earnings, and low financial leverage.
It all comes down to the concept of financial leverage.
On a regular repayment schedule, they have less financial leverage than borrowers with better incomes to pay down their debt early and keep up the pace with their interest rates.
We've also discussed the ability to take policy loans from permanent life policies in order to create financial leverage and maintain the velocity of your money.
Now that you have an understanding of what financial leverage is, you might be wondering if I think it's a wise idea to use leverage as an investing strategy.
It is well diversified across economic sectors, with an emphasis on high quality companies that have sustainable competitive advantages, conservative financial leverage and strong management.
In light of the current relatively borrower - friendly environment, this paper addresses using financial leverage to increase the reach, impact, and financial feasibility of 501 (c)(6) organizations» efforts.
Constituent companies are chosen based on their score on two sets of measures: a quantitative assessment consisting of their return on equity, balance sheet accruals ratio and financial leverage ratio; and a qualitative score derived from management's responses to a survey about such topics as corporate governance, risk and crisis management, customer relationships and tax strategies.
A crackdown on financial leverage could limit spending by state - owned enterprises in the second half of the year, but we see it as unlikely to hurt private sector lending.
In general, life insurance policy cash value can be used to supercharge the life insurance policy through paid up additions AND the cash can later be freely utilized to take advantage of other investments through life insurance policy loans, allowing for maximum financial leverage and the velocity of money.
Operating risk reflects the risk of the businesses that you operate in, whereas equity risk reflects operating risk magnified by financial leverage; the former is measured with the cost of capital whereas the latter is captured in the cost of equity.
Gearing is a means of measuring financial leverage, specifically it is the ratio of leverage to equity.
I measure [Delta] LEVER as the historical change in the ratio of total long - term debt to average total assets, and view an increase (decrease) in financial leverage as a negative (positive) signal.
exchange helped reduce overall financial leverage, while driving investment and economic development in a range of communities.
Even though Ramsey decries the use of debt for financial leveraging purposes, he still feels that real estate can be a part of an investor's investment portfolio.
Now, on the other side of the bubble, we have collapsing financial leverage among the importers, leading to a fall in demand for the exporters.
Debt - to - equity ratio (D / E ratio)-- A measurement of a company's financial leverage calculated by dividing a company's total liabilities by its stockholders» equity.
An important advantage to trading in gold futures is the fact that because they are traded at centralized exchanges, futures contracts offer more financial leverage, flexibility, and financial integrity as opposed to physically trading this precious metal.
To unpack this concept further, building up a reserve of ready cash in your life insurance policy provides a way to obtain financial leverage through your life insurance policy to pursue other perhaps higher risk endeavors such as real estate investing with infinite banking, investing in crypto currencies (perhaps), investing in the stock market OR whatever your area of expertise is.
Non-direct recognition loans allow you to maintain financial leverage AND create a financial arbitrage with your cash because the loan rates for policies are historically low variable rates (or fixed in some cases).
Gifting to an irrevocable life insurance trust has been particularly effective because gifted proceeds are used to purchase life insurance to further the estate planning goals and utilizing financial leverage with the gift.
Plus, there is increased financial leverage because the market cap is so small; the only cash spent so far has been on the permitting of Donlin Creek, not on actual operations.
Financial leverage magnifies returns received by equity holders and is one of the key factors to be aware of when searching for safe stocks.
We think it is reasonable therefore to posit that growth in bank reserves can lead to growth in financial leverage which, further, can lead to speculative appreciation in nominal stock prices.
Franchising not only allows the franchisor financial leverage, but also allows it to leverage human resources as well.
«Our long - standing philosophy has always been that excess financial leverage was not a good bedfellow with value investing» Richard Pzena
«To Marathon's way of thinking, it is not wise to introduce financial leverage into a business that already has a high degree of operating leverage.
Surely the US Federal Reserve's intent is not to bring the economic cycle to a close, but that is often the end result of trying to rid the system of risks like excessive financial leverage or runaway inflation.
They are also addicted to a system built off crony financial leverage that has largely locked out the vast majority of the public.
Quick to say they found the root - cause of the crisis — a banking system thats massive financial leverage and global interconnectedness created profound systemic risks to our modern economy — they swiftly passed Dodd Frank, a comprehensive regulatory reform package dressed up as the antidote to our sick financial system.
As Rahm Emanuel has put matters, a crisis is too good an opportunity to waste — and the fiscal crisis gives creditors financial leverage to push through anti-labor policies and privatization grabs.