Leverage Ratio Calculations Flashcards
What are leverage ratios?
Indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement
Indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement
What are leverage ratios?
Examples of leverage ratios?
Debt-to-Equity Ratio
Equity Ratio
Debt Ratio
Debt-to-Equity Ratio
Equity Ratio
Debt Ratio
Examples of leverage ratios?
Debt-to-Equity Ratio
(Debt + other fixed payments) / shareholder’s equity
(Debt + other fixed payments) / shareholder’s equity
Debt-to-Equity Ratio
Equity ratio
Shareholder’s equity / total assets
Shareholder’s equity / total assets
Equity ratio
Debt ratio
Debt / Total assets
Debt / Total assets
Debt ratio