Leverage Ratio

Output: Press calculate

Formula: Leverage Ratio = Total Debt / Total Equity

The Leverage Ratio is a financial metric that assesses the degree to which a company is financed through debt compared to its own equity. This ratio is crucial for understanding the financial structure of a company and its ability to meet financial obligations. A higher leverage ratio can indicate higher financial risk but also potential for higher returns. It's particularly important in industries that require significant capital investment.

Tags: Finance, Leverage, Ratio