In finance, leverage is a common term for any procedure to multiply achievements and fatalities. Most frequently leverage includes buying more of an asset via borrowed funds, with the trust that the income from the asset will be additional than the pay for the cost of borrowing.
Negative Financial Leverage Definition: Negative financial leverage is a situation in which the fixed return to a company’s creditors and preferred stockholders is greater than the return on total assets. In this situation, the return on common stockholders’ equity will be less than the
Capital Gearing Ratio: Definition and Explanation: Closely related to solvency ratio is the capital gearing ratio. Capital gearing ratio is mainly used to analyze the capital structure of a company. The term capital structure refers to the relationship between the various long-term form of