What Does Leverage Ratio Mean
A leverage ratio is a type of financial measurement used in finance, business, and economics to evaluate the level of debt relative to another financial metric. There is a range of financial leverage ratios used to gauge a company's financial strength, with the most common being debt-to-assets and debt-to-equity.
What Is Leverage Ratio? A leverage ratio is used to evaluate a company’s debt load in relation to its equity and assets. Investors use leverage ratios to understand A leverage ratio is a metric that expresses the degree to which a company’s operations are funded by debt (borrowed capital). The most popular leverage ratio—
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