LEVERAGE RATIOS Definition

LEVERAGE RATIOS measures the relative contribution of stockholders and creditors, and of the firms ability to pay financing charges. Value of firms debt to the total value of the firm.

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RELATIVE CHANGE is a value that is properly related in size or degree or other measurable characteristics, e.g. cost of goods enjoyed a relative change of 9% as compared to prior period performance.

MEAN is the measure of central tendency; also called the average. It is calculated by the sum of the data points divided by the number of data points.

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