Other

Ratio of Indebtedness to Capitalization Covenant

Analysis

StatementBalance Sheet Statement
SectionOther
CategoryLeverage
SignalLower is better
VolatilityStable
First reportedQ4 2021
Last reportedQ4 2021

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_covenant

Historical Data

1 periods
 Q4 '21
Value0.7

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 $0.70 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.