Leverage Ratio Calculations Flashcards

1
Q

What are leverage ratios?

A

Indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement

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2
Q

Indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement

A

What are leverage ratios?

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3
Q

Examples of leverage ratios?

A

Debt-to-Equity Ratio
Equity Ratio
Debt Ratio

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4
Q

Debt-to-Equity Ratio
Equity Ratio
Debt Ratio

A

Examples of leverage ratios?

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5
Q

Debt-to-Equity Ratio

A

(Debt + other fixed payments) / shareholder’s equity

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6
Q

(Debt + other fixed payments) / shareholder’s equity

A

Debt-to-Equity Ratio

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7
Q

Equity ratio

A

Shareholder’s equity / total assets

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8
Q

Shareholder’s equity / total assets

A

Equity ratio

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9
Q

Debt ratio

A

Debt / Total assets

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10
Q

Debt / Total assets

A

Debt ratio

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