Related Words

Debt Displacement: Ability to borrow. The amount a firm can borrow up to the point where the firm value no longer increases.

Long Term Debt: Financing used to purchase or improve assets such as plant, facilities, large equipment and real estate.

Level Debt Service: A municipal charter provision that debt payments must be relatively equal from year to year so that required revenue projections are easier.

Junior Debt (Subordinate Debt): Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.

Long-Term Debt: Total of all debt due after one year including bonds at face value.

Long-Term Debt As A Percent Of Total Capital: Long-term debt including capitalized leases expressed as a percentage of total capital (common and preferred stock plus long term debt). It reflects the use of leverage by the company.

Long-Term Debt-To-Equity Ratio: A capitalization ratio comparing long-term debt to shareholders' equity.

Long-Term Debt-Capitalization: Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common . . . View Full Definition

Long-Term Debt Ratio: The ratio of long-term debt to total capitalization.

Job Displacement: Occurs when an employee’s position is eliminated.