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"Following the acquisition, we expect our debt-to-total capitalization ratio to be about 45%.
The IPO raised $284 million; Ducati's net-debt-to-total-net capitalization ratio has been cut from 66% to 49%.
Overnight, this companys debt-to-total capitalization ratio dropped from more than 70% debt to about 33% — instantly improving its cash flow.
OMI is selling off older ships, which also helps to reduce its debt-to-total capitalization ratio, currently a relatively modest 45%.
In the meantime, using some of the money from asset sales and other belt-tightening, Alcoa has paid off $1.3 billion in debt this year, bringing its debt to capitalization ratio down to just over 35% from over 43%.
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The Dow Jones Islamic Indexes -- a series of 33 indexes containing at least 1,400 stocks -- filter out companies with debt-to-market capitalization ratios exceeding 33percentt during a trailing 12-month period.
But moderate levels of undercapitalization even capitalization ratios as low as 20% of the venture's initial goals are not statistically related to a venture's probability of surviving.
The debt-to-capitalization ratio is at 30percentt, down from 52percentt at the end of 2000.
He wrote, however, that Enron intended the deal to help meet its targeted debt-to-capitalization ratio, a number watched closely by investors.
And despite Teledynes $168 million acquisition of Rockwell Scientific in 2006, its debt-to-capitalization ratio remains at a very acceptable 38%.
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