Close X

Leverage Ratios

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.

Contact us Today

The Nick Yocca Law Firm is committed to answering your questions regarding business law, corporate compliance, and other important legal matters in Orange County.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment!