Senior Leverage vs. Total Leverage

Last Updated: Jun 7, 2019

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“Senior Leverage Ratio” means, as of the date of determination, the ratio of (a) the Pari Passu Indebtedness of the Company and its Restricted Subsidiaries on such date, to (b) EBITDA of the Company and its Restricted Subsidiaries for the most recently ended four fiscal quarters ending immediately prior to such date for which internal financial statements are available.

Total Leverage - combination of operating and financial leverage obtain total leverage. If a firm has a high amount of operating leverage and financial leverage, a small change in sales will lead to a large variability in EPS.