target leverage ratio

Definition

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.

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

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

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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.

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