Sentences with phrase «measuring financial leverage»

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

A company's Debt - to - Capital (D / C) ratio measures its financial leverage: How much does the company depend on borrowed money to finance its activities?

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.

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Thus, an A rated stock, according to S&P, is a higher quality investment than a B + rated stock, and the ratings are based upon financial measures (such as profitability ratios and financial leverage).

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).

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].

This ratio comes in several variations, but the basic idea is that you measure a company's financial leverage by comparing its debt with its shareholders» 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.