Financial leverage ratios

Definition:

Common ratios are debt divided by equity and debt divided by the sum of debt plus equity. Related: capitalization ratios.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Shakeout

A dramatic change in market conditions that forces speculators to sell their positions, often at a loss.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio