Leverage Factors

Few things to watch out for on factors related to leverage. It is a double edge sword.

(1) Gearing ratio of <35%; It can refer to (a) debt-to-equity ratio; (b) equity ratio or (c) debt ratio  is the one used in this case which is the total debt / total asset <more: Investopedia.com>

(2) Interest coverage ratio of >3: EBIT / Interest Expense <more: Investopedia.com>

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