Other
Ratio of Indebtedness to Capitalization Covenant
Analysis
StatementBalance Sheet Statement
SectionOther
CategoryLeverage
SignalLower is better
VolatilityStable
First reportedQ4 2021
Last reportedQ4 2021Feb 17, 2022
How to read this metric
Staying well below the covenant limit provides financial cushion, while approaching the limit restricts future borrowing capacity.
Detailed definition
A financial ratio mandated by debt agreements that limits the company's total debt relative to its total capitalization....
Peer comparison
Regulated utilities operate under similar regulatory and lender-imposed leverage constraints, making this a standard benchmark for credit quality.
Metric ID:
other_ratio_of_indebtedness_to_capitalization_covenantHistorical Data
1 periods
| Q4 '21 | |
|---|---|
| Value | 70% |
Ratio of Indebtedness to Capitalization Covenant at Other Companies
Frequently Asked Questions
- What is Southern Company's ratio of indebtedness to capitalization covenant?
- Southern Company (SO) reported ratio of indebtedness to capitalization covenant of 70.0% in Q4 2021.
- What does ratio of indebtedness to capitalization covenant mean?
- A debt-to-equity limit set by lenders to ensure the company does not borrow too much.