Capitalization ratios

 

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Capitalization ratios

Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow.



Capitalization ratios

Similar Matches

Overcapitalization

Overcapitalization

Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.


Small capitalization (small cap) fund

Small capitalization (small cap) fund

A mutual fund that invests primarily in mutual fund of companies whose market value is less than $1 billion. Small-cap stocks historically have been more volatile than large-cap stocks, and often perform differently from the overall market.


Capitalization rate

Capitalization rate

The rate of interest used to calculate the present value of a number of future payments.


Capitalization Weighted Index

Capitalization Weighted Index

A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heavist weighting in the index. See also Float, Divisor.


Leveraged recapitalization

Leveraged recapitalization

Often used in risk arbitrage. A public company takes on significant additional debt with the purpose of either paying an extraordinary dividend or repurchasing shares, leaving the public shareholders with a continuing interest in a more financially leveraged company. Popular form of shark repellent See: Stub.


Further Suggestions

Capitalization method
Total capitalization
Capitalization table
Small capitalization (small cap) stocks
Nasdaq small capitalization companies
Recapitalization proposal


 
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