Total Adjusted Leverage Ratio Sample Clauses
The Total Adjusted Leverage Ratio clause defines a financial covenant that measures a borrower's total debt relative to its adjusted earnings, typically EBITDA, as calculated under the agreement. This ratio is monitored by lenders to ensure the borrower maintains a specified level of financial health, often requiring regular reporting and compliance with a maximum threshold. By setting and enforcing this ratio, the clause helps lenders manage credit risk and provides an early warning mechanism if the borrower's indebtedness becomes excessive relative to its earnings.
Total Adjusted Leverage Ratio. The Company shall not, at any time permit its Total Adjusted Leverage Ratio to be greater than 5.75 to 1.0, such ratio to be calculated as of the end of each fiscal quarter of the Company based upon the four fiscal quarters immediately preceding such date of determination.
Total Adjusted Leverage Ratio. Permit the Total Adjusted Leverage Ratio for the four fiscal quarter period ending as of the last day of any fiscal quarter during any period of the Borrower and its Subsidiaries to be greater than 4.25 to 1.00.
Total Adjusted Leverage Ratio. The Borrower will not permit the Total Adjusted Leverage Ratio as of the last day of any fiscal quarter included in any period (or ending on any date) set forth below to be more than the ratio set forth in the table below opposite such period or date: