Leverage ratios

Leverage ratios examine how much debt a company uses for finance, and what sort of liability that debt imposes on the company's welfare. When subordinated debt exists, the ratios that are used take into account a company's senior liabilities and capital funds., or tangible capital funds. This is because subordinated debt increases a company's net worth on the books; it is considered to be capital as long as the loan exists. Some of the important leverage ratios are described in Table 8-3.

Table 8-3 Leverage Ratios

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Table 8-3 (Continued)

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Lessons From The Intelligent Investor

Lessons From The Intelligent Investor

If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving the annual savings rate by people has started to recover a bit.

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