Leverage Financial Ratios

The Debt Ratio is a financial metric that measures the proportion of a company's total liabilities to its total assets. It is an indicator of the financial leverage of a company, providing insights into its capital structure and ability to meet long-term obligations. A higher debt ratio suggests more leverage and potentially higher financial risk, while a lower ratio indicates a more conservative approach with less reliance on debt.

The Debt to Equity Ratio is a financial metric that compares a company's total debt to its shareholders' equity. This ratio indicates the relative proportion of debt and equity used to finance the company's assets, providing insights into its financial leverage and risk.

The Interest Coverage Ratio is a financial metric used to determine how easily a company can pay interest on its outstanding debt. It measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates a greater ability to cover interest expenses.