Leverage Ratio

A leverage ratio is one of several financial measurements that glances at how much capital comes in the form of debt (loans), or weighs the capacity of a company to meet its financial obligations. There are various specific ratios that may be categorized as a leverage ratio, but the main factors taken into consideration include debt, equity, assets and interest expenses. The concept was in the news recently. To know why it was in the news click the above link titled ‘Related News’.

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