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Terms Beginning with T
       
       
 

Total Capitalization

Financial Term


In finance, Total Capitalization, also known as Total Cap, refers to the total amount of capital used to support a company's operations. It is calculated by adding together the company's long-term debt, preferred stock, and common stock.

Total Capitalization is used as an indicator of a company's financial health and stability. A higher Total Cap indicates that the company has more resources available to support its operations, which can make it more attractive to investors.

Total Capitalization is often compared to a company's earnings or market capitalization to determine its value. For example, the Total Cap-to-Earnings ratio (TCE) is calculated by dividing a company's Total Cap by its earnings over the past year. This ratio can be used to compare a company's valuation to its peers in the industry.

Additionally, Total Capitalization can also be used as a factor in determining a company's creditworthiness. Lenders may use a company's Total Cap as a measure of its ability to repay debt. A higher Total Cap may allow a company to secure more favorable lending terms, while a lower Total Cap may lead to higher interest rates or difficulty accessing credit.


   
     

Total Capitalization

Financial Term


In finance, Total Capitalization, also known as Total Cap, refers to the total amount of capital used to support a company's operations. It is calculated by adding together the company's long-term debt, preferred stock, and common stock.

Total Capitalization is used as an indicator of a company's financial health and stability. A higher Total Cap indicates that the company has more resources available to support its operations, which can make it more attractive to investors.

Total Capitalization is often compared to a company's earnings or market capitalization to determine its value. For example, the Total Cap-to-Earnings ratio (TCE) is calculated by dividing a company's Total Cap by its earnings over the past year. This ratio can be used to compare a company's valuation to its peers in the industry.

Additionally, Total Capitalization can also be used as a factor in determining a company's creditworthiness. Lenders may use a company's Total Cap as a measure of its ability to repay debt. A higher Total Cap may allow a company to secure more favorable lending terms, while a lower Total Cap may lead to higher interest rates or difficulty accessing credit.


Related Financial Terms


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