Leverage Ratios

Leverage Ratios Leverage Ratios are a valuable family of financial ratios that business owners should understand how to calculate and analyze when running their business. What are Leverage Ratios? Leverage ratios are formulas that put two numbers from your business’...

Debt Ratio

Debt Ratio The Debt Ratio is a financial formula within the family of Leverage Ratios . It takes two numbers from your company’s balance sheet — total debt and total assets — and divides them. This produces a number that tells...

Equity Ratio

The Equity Ratio is one of several significant financial formulas within the family of Leverage Ratio s. It is calculated by dividing total equity by total assets, to produce a ratio or decimal which shows what proportion of a business’ assets...

Debt To Equity Ratio

Debt to Equity Ratio The Debt to Equity Ratio is an extremely useful financial formula within the family of Leverage Ratios . This ratio takes two financial metrics found on your balance sheet — total debt and total equity — and...

Interest Coverage Ratio

Interest Coverage Ratio The Interest Coverage Ratio is the last of our Leverage Ratios . Also referred to as the “times interest earned” ratio, this ratio measures how easily your company can pay the interest due on your outstanding debts, and...