Leverage Ratios

Term Main definition
Leverage Ratios

Measurements (expressed as ratios) of a company's indebtedness as compared to its cash flow or some other similar financial metric. Typical leverage ratios include Total Debt-to-EBITDA (which would measure the leverage as a ratio of debt to cash flow), Senior Debt-to-EDITDA (which would measure the leverage as a ratio of senior debt to cash flow), or Total Debt-to-(EBITDA minus Capital Expenditures) (a measurement of leverage as a ratio of the debt to the cash flow net after capital expenditures. The requirements imposed by key financial covenants in credit facilities and debt securities often include maximum leverage ratios, among many other things.

Services for Everyone

  • TRADE SECRETS

    A trade secret can be any valuable information - valuable for its technological or commercial applications - if the owner takes the
    Read More
  • SECURITIES

    The Nick Yocca Law Firm’s Securities Group handles all types of securities issues for businesses or individuals: advice on insider
    Read More
  • CORPORATE

    Our practice includes clients in all stages of business, from advising startup companies in search of financing, to representing clients
    Read More
  • REAL PROPERTY

    Real Estate Transactions Our real estate practice involves all aspects of real property for companies throughout their life cycle, from
    Read More
  • ESTATE PLANNING

    We do trusts and estates. Do yourself and your family a favor and engage an expert estate or elder law
    Read More
  • PRIVACY AND CYBERLAW

    We help companies with compliance issues relating to privacy, cybersecurity,e-commerce, social media, advertising practices, consumer disclosures, warranties and other consumer
    Read More