Leverage Ratio Calculator Guide
Leverage Ratio
Leverage ratios assess a company’s debt burden relative to equity or assets.
Common Forms
- Debt-to-equity = total debt / shareholders’ equity
- Debt-to-assets = total debt / total assets
Example
Debt $800k, equity $1.2M → D/E = 0.67.
FAQs
Industry norms?
Leverage varies by sector and business model.
Off-balance sheet?
Consider leases and contingent liabilities.