Leverage Ratios
Leverage Ratios The leverage ratios used to determine the companies’ financing methods, or the ability to meet the obligations. There are many ratios to calculate leverage but the important factors include debt, interest expenses, equity, and assets. The most important leverage ratio is the debt to equity ratio that gives you an idea about the debt one company is in and the equity it has at its disposal. Leverage ratios also determine the company’s cost mix and its effects on the operating ...
