LEVERAGE RATIOS Definition

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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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