Net Debt to Capitalization Ratio Sample Clauses
The Net Debt to Capitalization Ratio clause defines a financial metric used to assess a company's leverage by comparing its net debt to its total capitalization. In practice, this ratio is calculated by dividing the company's net debt (total debt minus cash and cash equivalents) by the sum of net debt and shareholders' equity. This clause typically applies to financial covenants in loan agreements or bond indentures, where maintaining a certain ratio is required. Its core function is to ensure the company maintains a prudent level of debt relative to its capital base, thereby managing financial risk and protecting lenders or investors.
Net Debt to Capitalization Ratio. The Company will not permit on any date the ratio of (a) Consolidated Net Indebtedness on such date to (b) the sum of (i) Shareholders' Equity on such date and (ii) Consolidated Net Indebtedness on such date to be greater than 0.55:1.00.
Net Debt to Capitalization Ratio. The Borrower will not permit its Net Debt to Capitalization Ratio to be greater than 65% as of the last day of each fiscal quarter.
Net Debt to Capitalization Ratio. (a) Permit the ratio of (a) Consolidated Net Debt for the Parent and its Subsidiaries on a consolidated basis to (b) Equity of the Parent, each at all times, to be greater than 2.00 to 1.00.
(b) Permit the ratio of (a) Consolidated Net Debt for OGIL and its Subsidiaries on a consolidated basis to (b) Equity of OGIL, each at all times, to be greater than 2.00 to 1.00.
Net Debt to Capitalization Ratio. The Borrower will not permit the Net Debt to Capitalization Ratio to exceed [***] to [***] for any Fiscal Quarter.