target leverage ratio


The ideal value for a company's financial leverage. A company will calculate its target leverage ratio by determining the level of debt they are comfortable at, and attempt to reach or maintain that level.

Use this term in a sentence

The target leverage ratio was an interesting thing to us and my friend knew exactly how to calculate it and make it work.

​ Was this Helpful? YES  NO 8 people found this helpful.

The target leverage ratio had been reached thanks to the financial analyst's advice to generate equity financing as well as debt.

​ Was this Helpful? YES  NO 9 people found this helpful.

John was asked to help calculate their target leverage ratio, and then present what would need to be done to reach it regarding their debt.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
target investment mix target payout ratio