Wednesday 25 October 2017

Financial Ratios - Financial Leverage Ratio

Financial Ratios - Financial Leverage Ratio




Financial Leverage Ratio We briefly looked at the financial leverage ratio in the previous chapter, when we discussed about Return on Equity. The financial leverage ratio gives us an indication, to what extent the assets are supported by equity.The formula to calculate the Financial Leverage Ratio is:

Average Total Asset / Average Total Equity

Stocks and Share Analyst


1 comment:

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