Sentence examples for low equity ratio from inspiring English sources

A low equity ratio can raise concerns about the firm's solvency and ability to obtain credit.

A low equity ratio indicates that the firm is leveraging itself heavily, meaning it is using debt to fund its assets.

In two subsequent papers (Cheong 1998, 1999), Cheong finds that if the quality difference between high and low quality firms is sufficiently large then the high quality firms can achieve a unique optimal capital structure which is characterized by a low debt to equity ratio.

The last time we came off low levels from the SIR equity ratio (in early 2006), we endured a very choppy broader market.

Over the past decades investors in stocks of small, high book-to-market equity ratio and high momentum firms ("weak" firms) have outperformed investors in stocks of big, low book-to-market equity ratio and low momentum firms ("strong" firms).

A ratio of 1.5 or higher is the bare minimum in most industries.[22] A low debt-service coverage ratio combined with a high debt to equity ratio should concern any investor.

When the difference between high and low quality firms is large enough, then the high quality firms raise their debt to equity ratio as a response to rising tax rates.

Look at the balance sheet and income statement for the following key measurements of financial strength: Low debt-to-equity ratio.

That means low debt-to-equity ratio, high interest coverage (where interest income substantially exceeds interest expense), increasing revenues and earnings, high return-on-equity and a dividend-payout ratio (earnings-to-dividends paid) no higher than 60% (except for utilities, REITs, and MLPs, which commonly have high payout ratios).

They show a ten-year history of consistent earnings-per-share (EPS), have paid dividends consistently over a long period of time, have a low debt-to-equity ratio (less than 1), a "return on equity" (ROE) greater than 15%, and consistent EPS growth.

But the underlying issue is low equity.