Thedebt-to-EBITDAleverage ratio measures the amount of income generated and available to pay down debt before a company accounts for interest, taxes, depreciation, and amortization expenses. This ratio, which is commonly used by credit agencies and is calculated by dividing short- and long-term d...
The leverage ratio is based on the notional value of the contract, using the value of the base currency, which is usually the domestic currency. For US traders, the base currency is USD. Often, only the leverage is quoted, since the denominator of the leverage ratio is always 1. The ...
Net leverage ratio, or net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) measures the ratio of a business' debt to earnings. It reflects how long it would take a business to pay back its debt if debt and EBITDA were constant. It's calculated using the f...
How Is a Solvency Ratio Calculated? Solvency ratios measure a company’s cash flow, which includes non-cash expenses and depreciation, against all debt obligations. For instance, consider the debt-to-assets ratio, a popular metric that measures the degree that a company’s assets are financed ...
Churn KPI, also called customer churn rate, is the measure to track customer attrition. It is calculated by dividing the number of customers who stopped doing business with you during a specified period by the total number of customers at the beginning of the same period of time. ...
Domain Authority is calculated by evaluating multiple factors, including linking root domains and the total number of links, into a single DA score. A domain's DA score is calculated using a machine learning algorithm that predicts how frequently a domain appears in Google's search results compare...
the financial risk refers to the levered beta. An unlevered beta assumes zero debt. The Hamada equation illustrates that when a firm increases its debt, the financial leverage also increases the firm's risk and, in turn, its beta. Levered beta can be calculated based on the unlevered beta,...
The CAP rate is valuable as a tool to value properties and tell you what you should pay for properties, but it only tells you the return if you are paying cash. I prefer to leverage my money, so the CAP rate is not the best indicator of how much money I will make. ...
Enterprise size (lnSize) is defined as the natural logarithm of the enterprise’s total assets; enterprise leverage (Lev) is expressed as the ratio of total liabilities to total assets; enterprise investment opportunity (TobinQ) is expressed as the ratio of the sum of stock market value, and...
This is also a great opportunity to get feedback. A busy customer may not take a survey, but if the CEO asks them if they have any comments, the customer may be more likely to respond. 7. Leverage feedback from free trial customers. Churn doesn't happen until you lose revenue after ...