How to lower leverage ratio?

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Dutcher10 0 Comments

Let’s say that a company has a high leverage ratio? Do you know an efficient way to reduce the leverage ratio?

1 Answer

score 0 · Answer 1 · 2012-12-02T22:53:45+00:00

The leverage ratio can be decreased by either increasing the capital (issuing equity) or by decreasing the interest bearing debt that the company has (bonds, redeemable preference shares, loan stock and bank loans).