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Leverage Ratios
A leverage ratio is any kind of financial ratio that indicates the level of debt
incurred by a business entity against several other accounts in its balance
sheet, income statement, or cash flow statement. These ratios provide an
indication of how the company’s assets and business operations are financed
(using debt or equity).
A. Leverage Ratios
Leverage ratios represent the extent to which a business is utilizing
borrowed money. It also evaluates company solvency and capital
structure. Having high leverage in a firm’s capital structure can be risky,
but it also provides benefits.
Debt-to-Equity Ratio
Debt Ratio
Financial Ratios
