A leverage ratio measures how much debt a business uses to finance its operations compared to its equity or assets. It helps determine a company’s financial stability and long-term risk. Common types of leverage ratios include the Debt-to-Equity Ratio, Debt-to-Asset Ratio, and Interest Coverage Ratio. These ratios assess whether a company can comfortably repay its obligations. The bas... https://thealgebragroup.com/leverage-ratio/