The relationship issuer's leveraged money. It is shown in bonds and determined as a percent. Preceding 33percent is high. Energy companies are very leveraged.
Measure of a bond issuer's leveraged (borrowed) capital represented by bonds, expressed as a percentage. Bond ratio above 33 percent is considered high, except for utility companies which are, as a rule, highly leveraged. Formula: Bonds due after one year x 100 ÷ (Bonds due after one year + Equity capital).