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Reverse leverage definition

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Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios Since he is generating a negative return of 5% on his investment, David has experienced negative leverage.

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Leverage definition

Accounting Tools

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Articles Leverage Ratios Leveraged Lease This issue can be mitigated by restricting the amount of debt that a business takes on, as well as by maintaining a reasonable cash reserve.

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Equity research definition

Accounting Tools

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Equity Research? Financial Analysis Calculate the various ratios associated with a company's financial statements and compare them on a trend line to determine the financial condition, financial results, and cash flows of the business.

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Simple capital structure definition

Accounting Tools

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is a Simple Capital Structure? A corporation with a simple capital structure does not have any securities outstanding that could potentially dilute the value of its earnings per share.

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Gearing definition

Accounting Tools

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Gearing? Related Articles Capital Structure Analysis Degree of Financial Leverage Equity Spread Financial Leverage Financial Statement Analysis Optimal Capital Structure

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Capital structure definition

Accounting Tools

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Capital Structure? Capital structure is the mix of debt and equity that a business uses to fund its operations.

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Financial gearing definition

Accounting Tools

How to Calculate Financial Gearing The calculation used for financial gearing is to add together all forms of debt and then divide by the total amount of equity.