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gearing
(redirected from Leverage ratio)

   Also found in: Dictionary/thesaurus, Medical, Financial, Wikipedia 0.01 sec.
gearing
1. an assembly of gears designed to transmit motion
2. the act or technique of providing gears to transmit motion

gearing [′girĀ·iŋ]
(mechanical engineering)
A set of gear wheels.


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announced that it amended its senior secured credit facility to extend the application of the current calculation of its leverage ratio test.
The new deal increases its leverage ratio -- the amount of debt it has, versus shareholder equity -- from five-to-one to 6-1/2-to-one through the end year, then taking it up to 6-3/4-to-one for the first nine months of 2009 and then stepping it back down to 4-1/2-to-one in September 2010.
And with that enormous leverage ratio, or course, comes enormous risk.
 
 
 
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