financial leverage ratiofinancial leverage calculation
financial leverage ratio explanation of use

The Financial Leverage Ratio is included in the following highlighted FINANCIAL STATEMENT RATIO SPREADSHEETS, NOW ON SALE!

RA -  8 Basic

RA - 15

RA - 25

RA - 35

RA - 50 Professional

RA - 70 Small Business

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RA - 125 Wizard

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financial leverage ratio desription
financial leverage ratio

Financial Leverage Ratio
financial leverage ratio

Formula to calculate financial leverage ratio:

Financial Leverage Ratio = total debt / shareholders equity.


Financial leverage ratio definition and explanation:


The financial leverage ratio is also referred to as the debt to equity ratio.

The financial leverage ratio indicates the extent to which the business relies on debt financing.

Upper acceptable limit of the financial leverage ratio is usually 2:1, with no more than one-third of debt in long term.

A high financial leverage ratio indicates possible difficulty in paying interest and principal while obtaining more funding.

The financial leverage ratio is included in the book "Financial Statement Analysis including over 200 ratios" available for $35 (freight included). Download for $7. Spreadsheet calculators also available.

The financial leverage ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. 

The financial leverage ratio is listed in our leverage ratios.

The financial leverage ratio and other ratios are key to understanding financial statements. Our ratio calculation spreadsheets reduce time and effort in calculating decision making ratios. They reduce risk for lenders and investors and enable owners, managers and consultants to increase productivity and business profits. These spreadsheets are bargain priced to provide a huge return on investment. Click here for more details.

Spreadsheets to calculate ratios (includes formulas, definitions, explanations and charts):

See list of ratios , or the financial statement ratio analysis spreadsheets which are not highlighted in the left column, to see which other ratios our spreadsheets calculate, define and explain. 

The financial leverage ratio may be included in our custom 1, 3 or 5 period financial statement ratio analysis spreadsheet.

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financial leverage ratio
financial leverage ratio