Ethnicity pay gap and Leverage: Difference between pages

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''Diversity and inclusion''.
1. <br />
Debt divided by Debt plus Equity = D / (D + E).<br />
<br />
<b>Example</b><br />
If the amounts of debt and equity were equal then leverage under this definition would be calculated as:<br />
1 / (1 + 1) = 50%.<br />
<br />
2. <br />
The term 'leverage' is also used in a broader sense to refer to the amount of debt in a firm's financial structure.<br />
Used in this broader sense, 'leverage' means very much the same as 'gearing'. <br />
However, leverage and gearing are normally quantified by different calculations.<br />
<br />
3. <br />
To increase the level of gearing in an operational or financial structure.  The intention of leveraging is to improve expected net results.  <br />
A consequence of leveraging is normally to increase financial risk.<br />
Many financial disasters have been a consequence of leveraging up excessively in this way in earlier periods.
<br />


The ethnicity pay gap is defined by the UK's Office for National Statistics (ONS) as the difference between the average hourly earnings of White British and other ethnic groups as a proportion of average hourly earnings of the White British group.


The ONS has published figures based on newly reweighted earnings data from the existing Annual Population Survey.
== See also ==
 
* [[Debt]]
 
* [[Deleverage]]
Ethnicity pay gap reporting by employers in the UK is not yet mandatory, although a number of larger employers have reported their ethnicity pay gap on a voluntary basis.
* [[Gearing]]
* [[Leverage ratio]]


Gender pay gap reporting is already mandatory in the UK for larger organisations.


===Other links===
[http://www.treasurers.org/node/8012 Masterclass: Measuring financial risk, The Treasurer, July 2012]


In the United States, larger employers are required to report both of their ethnicity and gender pay gaps by 30 September 2019, in respect of 2017 and 2018.
[[Category:Corporate_finance]]
 
 
== See also ==
* [[Diversity]]
* [[Gender pay gap]]
* [[GMP equalisation]]
* [[Government Equalities Office]]
* [[Office for National Statistics]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]

Revision as of 12:12, 29 May 2015

1.
Debt divided by Debt plus Equity = D / (D + E).

Example
If the amounts of debt and equity were equal then leverage under this definition would be calculated as:
1 / (1 + 1) = 50%.

2.
The term 'leverage' is also used in a broader sense to refer to the amount of debt in a firm's financial structure.
Used in this broader sense, 'leverage' means very much the same as 'gearing'.
However, leverage and gearing are normally quantified by different calculations.

3.
To increase the level of gearing in an operational or financial structure. The intention of leveraging is to improve expected net results.
A consequence of leveraging is normally to increase financial risk.
Many financial disasters have been a consequence of leveraging up excessively in this way in earlier periods.


See also


Other links

Masterclass: Measuring financial risk, The Treasurer, July 2012

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