Leverage Ratios

“When you combine ignorance and leverage, you get some pretty interesting results.” – Warren Buffett What are leverage ratios?  Measures a business’s reliance on debt and equity, risk related to its debt obligations, and the efficient (or inefficient) use of debt....

Sweat equity is the most valuable equity there is. Know your business and industry better than anyone else in the world. Love what you do or don’t do it. – Mark Cuban What is the equity ratio? Measures the use of...

“I’m not that much of a risk taker. I just take situations that people perceive to be high risk, and I decide that they can be managed to low risk.” – Andrew Beal What is the interest coverage ratio? Measures...