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Definition of

leverage ratios


means of quantifying risk from capital ratios that indicate the level of risk taken by a company as a result of its capital structure. A number of different ratios may be calculated, for example, debt ratio (total debt divided by total assets), debt-to-equity or leverage ratio (total debt divided by total equity), or interest cover (earnings before interest and tax divided by interest paid).

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Definitions of ’leverage ratios’ and meaning of ’leverage ratios’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’leverage ratios’ and other financial terms with our online QFINANCE Financial Dictionary.

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