0
It means that an input of 1 unit should result in an output of 1.8 units. The exact output depends on whether the ratio is adjusted for "leakages". In any real machine, some of the force is used up to overcome friction, slippage and so on.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What is the ratio of 18 and 31?
It is simply 18:31.
What is the ratio of 15 and 18?
The ratio of 18 and 15 is 18:15, but it can be reduced. 3 is the GCF of both numbers, so we can divide each by 3. The ratio of 18:15 after dividing both numbers by 3 is 6:5.
What is the equivalent ratio for 12 to 18?
120 to 180 is an equivalent ratio.
What is Basic Earnings Power Ratio?
The basic earning power ratio (or BEP ratio) compares earnings apart from the influence of taxes or financial leverage, to the assets of the company. It is just a ratio of the earnings of the company and its assets and does not include the capital invested into the company or the tax and interest liabilities.Formula:BEPR = EBIT / Total Assets
How can you divide 28 cans of soda into two groups so the ratio is 9 to 5?
The ratio then will be 18 to 10
What are the advantages and disadvantages of a high leverage ratio?
disadvantages of a high leverage ratio in financial crisis
The debt ratio is a measure of a firms what?
Leverage
What is a cash flow leverage ratio?
Senior Debt / EBITDA
What mean by combine leverage?
combine leverage
What is a leverage multiplier ratio?
the return on equity divided by the return on assets
Leverage is increased as the ratio of debt to common stock rises?
True
What is composite leverage?
Composite leverage equals financial leverage times operating leverage. Composite leverage is used to calculate the combined effect of operating and financial leverages. Leverage is the ratio of a company's debt to its equity.
How does new debt effect leverage?
Leverage ratio (debt to equity ratio) is calculated by dividing a company's total debt by the company's total shareholder equity. Therefore, any new debt will raise the leverage ratio (and the risk to the bank). Example: Company has $1,000,000 in Total Assets; $400,000 in debt; $100,000 in other liabilities; and $500,000 in Equity. The company's beginning leverage ratio is 0.8 ($400,000/$500,000). Now, assume the company borrowers $250,000 to purchase additional equipment. The business would then have $1,250,000 in Total Assets; $650,000 in debt; $100,000 in other liabilities; and $500,000 Equity. The company's new leverage ratio would be 1.3 ($650,000/$500,000).
Why leverage ratio is used in financial statement analysis?
Leverage ratios are used to find out that how much earnings has effects on overalll cashflows and profit of business.
Define leverage ratio?
Leverage Ratio is an idea of how a change in a company's output will affect their operating income. It is used to measure a company's mix of operating costs, showing how a change in the company's ideas will affect the output of their operating income.
What is Tier 1 Risk-Based Capital Ratio?
It's the ratio of leverage to core capital at a bank, wikipedia has an excellent explanation
What is financial leverage ratio?
Leverage is using debt to finance investments.Leverage ratio is the ratio between the size of the debt and some metric for the value of the investment.There are several financial leverage ratios, for companies the debt-to-equity ratio is the most common one: Total debt / shareholder equity.As an example we can use the debt-to-equity ratio for a home with a market value of $110,000 and a mortgage of $100,000: Debt is $100,000 and equity is $10,000 (market value minus debt), giving a debt-to-equity ratio of 100,000/10,000 = 10.The general idea is that very low leverage means that a company isn't growing as quickly as it could, while a very high leverage means that a company is vulnerable to temporary setbacks in sales or increases in interest rate.What is considered a 'good' ratio varies quite a bit between different types of business.See also related links.
