Sentences with phrase «leverage ratio»

The phrase "leverage ratio" refers to a financial measurement that compares the amount of debt a company has to its equity or ownership stake. It shows how much money a company has borrowed compared to its overall value. A high leverage ratio indicates that a company has a lot of debt in relation to its assets, which can be risky, while a low leverage ratio means the company has less debt and is considered financially stable. Full definition
Trading with higher leverage ratios may not be suitable for all type of traders and may be too risky for some.
What I mean by that is that is we're looking at companies that have strong balance sheets and low leverage ratios on one side.
Instead of taking on unnecessary risks, use the demo account to determine the right leverage ratio for your particular trading style.
Our main focus in this article is leverage ratio which measures the extent an individual or company relies on borrowing to finance its activities or obligations.
Doesn't increasing leverage ratio mean increasing debt relative to equity or capital, making the bank riskier?
Knowing the right leverage ratio to use is a good risk management tactic especially when the market is extremely volatile.
While most would consider a 78 % leverage ratio conservative (and it is), many of the properties are development projects.
The market leverage ratio, which substitutes market cap for the book value of equity, is near the record low reached in 2016.
As such, a simple leverage ratio will not cut it.
Corporate balance sheets look surprisingly weak, according to one of the analysts, who said leverage ratios had risen and interest - coverage ratios had fallen.
And it adjusts leverage ratios — the measure of a bank's financial sustainability — for such entities.
We've talked before about how this works in practice: The actually existing leverage ratio proposals are pretty complicated.
Shouldn't it be the reverse — decreasing leverage ratio, not increasing it?
A raw leverage ratio, or fixed charges ratio in the financial sector wouldn't be a bad idea, but it probably wouldn't be enough.
But I was curious if you did any tests on the P / B ratio w / varying leverage ratios.
All banks would face a simple 10 % leverage ratio regardless of how risky their loan books are.
Our contention remains that to have a single high leverage ratio that applies to all institutions, systemic banks and new and existing challengers like building societies alike, misses the point.
When you're new to forex, you should always start trading small with lower leverage ratios, until you feel comfortable in the market.
The market leverage ratio, which substitutes market cap for the book value of equity, is near the record low reached in 2016.
For spot forex and CFDs, BinaryCent offer a maximum leverage ratio of 1:100.
Another question might be whether the current debt / equity leverage ratio of about 2.5:1 is appropriate, to high or too low?
For safety's sake, Graham stuck to stocks with leverage ratios (the ratio of total assets to shareholders» equity) of two or less.
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.
Barclays also fell marginally below its Tier 1 leverage ratios systemic reference point,» the BoE said.
38 Domestic depository institutions are subject to a regulatory leverage ratio that is calculated as an average over the quarter and thus experience less variation in balance sheet costs at the end of quarters.
And if their bank really kicks up, LIV could easily drop in some extra cash from Credit Strategies to improve leverage ratios.
A question for the econometrically minded: is there a simple model in which prevailing leverage ratios influence long - term stock valuations?
Anon wrote: «Is there a simple model in which prevailing leverage ratios influence long - term stock valuations?»
With the help of a new cottage industry — law firm management consultants — the prevailing business model for large law firms accelerated toward a handful of indicators that measure immediate results: billable hours, client billings, and associate - to - partner leverage ratios.
LONDON (Reuters)- The world's top 30 banks face a higher minimum requirement for their broadest measure of capital, global regulators said on Monday as they flagged a two - tier leverage ratio regime for the first time.
Because the addition of a repo - funded asset increases the overall size of the bank's balance sheet, it raises the probability that the simple unweighted leverage ratio requirement will bind, if it does not already do so.
It's always dumb to say «X is not a panacea,» because no one ever said it was, but some people kind of think that bank leverage ratios are a panacea.
A 50:1 leverage ratio means that the minimum margin requirement for the trader is 1/50 = 2 %.
The company cut their dividend -32.3 % to $ 0.40 / share (10.3 % annualized yield), which will enable SunCoke to replenish cash and reduce debt so they can achieve their 3.5 x target leverage ratio.
This gives GS an effective leverage ratio vs its notional OBS derivatives exposures of 8,800 to 1.
On one analysis, that implies a net debt - earnings before interest, tax, depreciation and amortisation leverage ratio of 2.8 times — a level at which bankers could start to sweat.
But we will recognise the special position of UK banks with large overseas deposits, and will watch international developments before imposing a fixed leverage ratio.
Commenting on the publication of the second report by the Parliamentary Commission on Banking Standards, Adrian Coles, Director - General of the Building Societies Association said: «It is clear from the this morning's report that there the Committee has strong feelings about the right percentage level for the minimum leverage ratio.
So I don't think there is a right or wrong answer, but I'd probably favor a more opportunistic approach to capital allocation that gives the flexibility to take on leverage at times, and at other times let cash build up (or let leverage decline) in anticipation of utilizing dry powder elsewhere... I think most stable companies seem to lean more toward a consistent leverage ratio though...
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.
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