skuldsättningsgrad

Skuldsättningsgrad, often translated as gearing or leverage ratio, is a financial metric used to assess the extent to which a company is financed by debt. It indicates the proportion of a company's assets that are funded by creditors rather than shareholders. A high skuldsättningsgrad suggests that a company has a significant amount of debt relative to its equity, which can increase financial risk. Conversely, a low skuldsättningsgrad implies that the company relies more on its own capital.

There are several ways to calculate skuldsättningsgrad. A common method is to divide total liabilities by total equity. Another approach is to divide total debt by total assets. The interpretation of these ratios can vary depending on the industry and the specific company's business model. For example, capital-intensive industries may typically have higher skuldsättningsgrader than service-based industries.

A high skuldsättningsgrad can amplify returns for shareholders during periods of profitability because the interest payments on debt are fixed, leaving more of the increased earnings for equity holders. However, it also magnifies losses when the company performs poorly. High debt levels can make a company more vulnerable to economic downturns and rising interest rates, potentially leading to financial distress or bankruptcy if the company is unable to meet its debt obligations. Lenders often use skuldsättningsgrad as a key indicator when deciding whether to extend credit and at what interest rate. Investors may consider it when evaluating a company's financial health and risk profile.