| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
Capitalization ratios
Definition 1.
Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow.
|
Definition 2.
The percentage of a company's total capitalization that each capital component (debt, preferred stock, common stock, other equity) contributes.
|
|
|