The Role and Importance of Leverage Rates in the Financial Management of the Company

Lãpãduºi Mihaela Loredana ()
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Lãpãduºi Mihaela Loredana: „Constantin Brâncuºi”University of Târgu-Jiu

Ovidius University Annals, Economic Sciences Series, 2011, vol. XI, issue 2, 702-706

Abstract: The aim of this article is to present an own vision regarding the role and importance of the analysis of the leverage rates seen as one of the key aspects of the financial management of the company. Our concerns have in view a theoretical and methodological approach of the debt ratios that can influence the financial activity of the company. Establishing the level of indebtedness is one of the most important financial policy decisions of the company. The analysis of the company indebtedness is a matter of internal management of the company through which it must ensure the effective use of loan contracts and the conditions necessary for the repayment terms and interest on outstanding rates. The rates are sizes that are expressed by number, points or term and are analysis tools used for knowing certain economic and financial historical or forecast phenomena, and also of the elements and factors causing them.

Keywords: debt; debt ratios; financial leverage; financial independence; repayment capacity (search for similar items in EconPapers)
JEL-codes: B26 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xi:y:2011:i:9:p:702-706

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