• In finance, leverage, also known as gearing, is any technique involving borrowing funds to buy an investment. Financial leverage is named after a lever...
    17 KB (2,376 words) - 18:13, 21 July 2024
  • The consumer leverage ratio is the ratio of total household debt to disposable personal income. In the United States these are reported, respectively...
    4 KB (388 words) - 22:57, 3 March 2024
  • Basel III (redirect from CET1 ratio)
    the leverage ratio will often be the binding capital metric. In 2013, the U.S. Federal Reserve announced that the minimum Basel III leverage ratio would...
    48 KB (5,360 words) - 17:39, 20 February 2024
  • finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage. The two components are often taken from the...
    6 KB (850 words) - 18:09, 16 September 2023
  • Operating leverage is a measure of how revenue growth translates into growth in operating income. It is a measure of leverage, and of how risky, or volatile...
    7 KB (1,069 words) - 07:59, 13 May 2024
  • Thumbnail for Capital structure
    structure and cost of capital for ratemaking purposes. Various leverage or gearing ratios are closely watched by financial analysts to assess the amount...
    31 KB (3,875 words) - 15:52, 18 July 2024
  • Thumbnail for Consumer debt
    consumer's disposable income is expressed as the consumer leverage ratio. On a monthly basis, this debt ratio is advised to be no more than 20 percent of an individual's...
    19 KB (577 words) - 08:20, 30 May 2024
  • Thumbnail for Financial ratio
    Sales⁠ × 365 Days Degree of Operating Leverage (DOL) ⁠Percent Change in Net Operating Income/Percent Change in Sales⁠ DSO Ratio. ⁠Accounts Receivable/Total Annual...
    17 KB (1,966 words) - 21:29, 13 June 2024
  • § Common capital ratios Tier 1 capital Tier 2 capital Basel accords Tier 1 Capital Ratio TLAC, Total Loss Absorbency Capacity LR, Leverage Ratio NSFR, Net Stable...
    7 KB (953 words) - 22:53, 18 May 2024
  • Deleveraging (category Financial ratios)
    the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic...
    14 KB (1,735 words) - 21:08, 13 June 2024
  • Thumbnail for Too big to fail
    crisis, regulators have worked with banks to reduce leverage ratios. For example, the leverage ratio for investment bank Goldman Sachs declined from a peak...
    63 KB (7,390 words) - 10:08, 18 June 2024
  • standards set new definitions of capital, higher capital ratio requirements, and a leverage ratio requirement as a "back stop" measure. Risk-based capital...
    12 KB (1,422 words) - 14:38, 3 June 2024
  • their leverage (i.e., the ratio of their debt or assets to their equity). Financial reports filed by those companies show an increase in their leverage ratios...
    148 KB (22,533 words) - 17:42, 4 July 2024
  • SA-CCR is also input to other regulations such as the leverage ratio and the net stable funding ratio. Basel Committee on Banking Supervision (2018). "Counterparty...
    3 KB (363 words) - 13:55, 26 January 2024
  • minimizing efficiency ratios (reducing expenses and increasing earnings). The concept typically applies to banks. It relates to operating leverage, which measures...
    3 KB (268 words) - 22:24, 27 February 2024
  • and sell when the index goes down in order to maintain a fixed leverage ratio. Leverage possesses a dual nature, as it has the potential to result in substantial...
    75 KB (7,902 words) - 14:40, 9 July 2024
  • measurement approaches; revisions to the measurement of the leverage ratio and a leverage ratio buffer for global systemically important banks (G-SIBs),...
    10 KB (1,194 words) - 18:01, 5 March 2024
  • industry average ratios. Those differences appeared for every leverage ratios and mostly for activity, profitability ratios. For liquidity ratios there are no...
    17 KB (1,960 words) - 22:39, 10 March 2024
  • Thumbnail for Price–earnings ratio
    price–earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used...
    18 KB (1,962 words) - 20:01, 7 July 2024
  • these institutions do not take on excess leverage and risk becoming insolvent. Capital requirements govern the ratio of equity to debt, recorded on the liabilities...
    16 KB (2,113 words) - 00:48, 30 May 2024
  • new liquidity requirements: the net stable funding ratio (NSFR) and the liquidity coverage ratio (LCR). On October 31, 2014, the Basel Committee on Banking...
    6 KB (765 words) - 08:18, 16 January 2024
  • Thumbnail for Financial statement analysis
    profitability ratios, activity ratios and leverage ratios. These are typically analyzed over time and across competitors in an industry. Liquidity ratios are used...
    11 KB (1,315 words) - 11:58, 18 May 2024
  • The tier 1 capital ratio = tier 1 capital / all RWA The total capital ratio = (tier 1 + tier 2 capital) / all RWA Leverage ratio = total capital/average...
    4 KB (565 words) - 09:54, 5 July 2024
  • manager has a leverage ratio of (say) 5 then his return is not 2% but 5 × 2 % = 10 % {\displaystyle 5\times 2\%=10\%} . However, leverage also amplifies...
    5 KB (802 words) - 04:04, 30 June 2023
  • price index (a measure for inflation), Inverted yield curve, consumer leverage ratio, industrial production, bankruptcies, gross domestic product, broadband...
    15 KB (1,552 words) - 22:57, 4 May 2024
  • Thumbnail for Leveraged buyout
    A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition...
    34 KB (4,699 words) - 21:02, 2 June 2024
  • of the firm. Companies with high debt to asset ratios are said to be highly leveraged. (If the ratio is less than 50%, most of the company's assets are...
    2 KB (241 words) - 08:21, 8 July 2024
  • The banking industry in France has, as of 11 October 2008, an average leverage ratio (assets/net worth) of 28 to 1, and its short-term liabilities are equal...
    5 KB (408 words) - 11:35, 1 March 2024
  • cash flow to service debt, declining revenues or operating margins, high leverage, declining or marginal liquidity, and the inability to successfully implement...
    16 KB (2,415 words) - 15:18, 24 June 2024
  • factor (CCF) is a coefficient in the field of credit rating. It is the ratio between the additional amount of a loan used in the future and the amount...
    3 KB (331 words) - 19:17, 14 March 2022