Enimmäisvelkaantumisasteen
Enimmäisvelkaantumisasteen, often translated as maximum leverage ratio, is a financial metric used to assess the extent to which a company or an individual is using debt to finance its assets. It represents the highest permissible level of debt relative to equity or other measures of financial strength. This ratio is crucial for understanding a borrower's risk profile. A higher enimmäisvelkaantumisasteen generally indicates a greater reliance on borrowed funds, which can amplify both potential returns and potential losses.
In corporate finance, the enimmäisvelkaantumisasteen can be a covenant in loan agreements, limiting the company's ability