Variance inflation factor
| Variance inflation factor (VIF) | 1/VIF | |
|---|---|---|
| Capitalization ratio | 4.364 | 0.257 |
| Equity multiplier | 4.009 | 0.286 |
| Interest coverage | 2.303 | 0.434 |
| Fixed charge coverage | 2.293 | 0.436 |
| Debt-to-EBITDA ratio | 1.396 | 0.716 |
| Size of the firm | 1.21 | 0.826 |
| Age of the firm | 1.158 | 0.863 |
| Capitalization ratio | 1.07 | 0.935 |
| Sales growth | 1.002 | 0.998 |
| Degree of financial leverage | 1 | 1 |
| Mean VIF | 1.9805 |
| Variance inflation factor (VIF) | 1/VIF | |
|---|---|---|
| Capitalization ratio | 4.364 | 0.257 |
| Equity multiplier | 4.009 | 0.286 |
| Interest coverage | 2.303 | 0.434 |
| Fixed charge coverage | 2.293 | 0.436 |
| Debt-to-EBITDA ratio | 1.396 | 0.716 |
| Size of the firm | 1.21 | 0.826 |
| Age of the firm | 1.158 | 0.863 |
| Capitalization ratio | 1.07 | 0.935 |
| Sales growth | 1.002 | 0.998 |
| Degree of financial leverage | 1 | 1 |
| Mean VIF | 1.9805 |
Source(s): Authors’ own work
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