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’...
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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...
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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...
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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...
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“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...
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