Glossary entry (derived from question below)
Italiano term or phrase:
margine di struttura
Inglese translation:
(surplus capital) asset cover ratio
Added to glossary by
DCypher (X)
Oct 12, 2006 08:33
18 yrs ago
12 viewers *
Italiano term
margine di struttura
Da Italiano a Inglese
Affari/Finanza
Economia
the term indicates how solid a company is, that is, its ability to fund its business with equity only (Equity less fix assets)
Proposed translations
(Inglese)
5 +1 | surplus capital |
DCypher (X)
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3 | consolidation of structure |
Caterina Passari
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Change log
Oct 12, 2006 18:11: Riccardo Schiaffino changed "Level" from "Non-PRO" to "PRO"
Proposed translations
+1
6 ore
Selected
surplus capital
capital not currently employed in operating activities and therefore available for further investment.
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Note added at 1 day3 hrs (2006-10-13 12:15:13 GMT) Post-grading
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If there is a capital deficit/company is insolvent, it will have to sell assets to repay debtors. Yes. Most companies in US & UK also finance operating assets through a mix of debt and equity as it is more capital efficient and the leverage yields higher returns for shareholders. If I have a healthy d/e ratio, I can increase my investment (leveraged or unleveraged).
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Note added at 1 day3 hrs (2006-10-13 12:19:17 GMT) Post-grading
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You might also consider...and probably more applicable, you are correct...Asset Cover Ratio
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Note added at 1 day3 hrs (2006-10-13 12:15:13 GMT) Post-grading
--------------------------------------------------
If there is a capital deficit/company is insolvent, it will have to sell assets to repay debtors. Yes. Most companies in US & UK also finance operating assets through a mix of debt and equity as it is more capital efficient and the leverage yields higher returns for shareholders. If I have a healthy d/e ratio, I can increase my investment (leveraged or unleveraged).
--------------------------------------------------
Note added at 1 day3 hrs (2006-10-13 12:19:17 GMT) Post-grading
--------------------------------------------------
You might also consider...and probably more applicable, you are correct...Asset Cover Ratio
2 KudoZ points awarded for this answer.
Comment: "the surplus capital shows the solidity of an enterprise - as does the It. term - but the definition is specular to the Italian term: companies in It. have often little equity (high leverage) that doesn't even cover the fixed assets. In case of default, if the "structure margin" is negative, current debt will (eventually) have to be paid with fixed assets."
3 min
consolidation of structure
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