As
a measure of financial leverage, companies with a debt - to - capital ratio of 50 % or lower made the First Cut [capital consists of debt plus equity].
Debt / Total capital, which is
a measure of financial leverage, is calculated by dividing long - term debt by total capitalization (the sum of equity plus preferred equity and long - term debt).
Not exact matches
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.
And it adjusts
leverage ratios — the
measure of a bank's
financial sustainability — for such entities.
While a number
of simple
measures of valuation have also been useful over the years, even metrics such as price - to - peak earnings have been skewed by the unusual profit margins we observed at the 2007 peak, which were about 50 % above the historical norm - reflecting the combination
of booming and highly
leveraged financial sector profits as well as wide margins in cyclical and commodity - oriented industries.
... This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover ×
financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders» equity) ROE = annual net profit ÷ shareholders» equity NasdaqGS: MRVL Last Perf Nov 28th 17 Basically, profit margin
measures how much
of revenue trickles down into earnings which illustrates how efficient MRVL is with its cost management.
In addition,
financial companies are evaluated using a range
of specific metrics to
measure leverage, liquidity and funding risk.
On the assumption that the «average high BM firm is financially distressed,» Piotroski chose nine fundamental signals to
measure three areas
of the firm's
financial condition: profitability,
financial leverage / liquidity, and operating efficiency:
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.
Gearing is a means
of measuring financial leverage, specifically it is the ratio
of leverage to equity.
Financial ratios
measure liquidity, activity,
leverage, and profitability
of a company.
The total debt to equity ratio is a
measure of a company's
financial leverage.
In a survey
of 450 managers in multi-national companies, McKinsey found that effective management
of cultural diversity in a global setting was highly correlated with
financial success as
measured by profit per employee.3 In companies with proficient cross-cultural management, they found that foreign office profits increased through higher productivity, more cross-selling, client expansion, work referrals from other offices, and
leveraging of global resources.
Measure the impact
of federal taxation and
financial leverage on the cash flow from acquisition, ownership and disposition phases
of real estate investment.