Financial ratio tool
Leverage Ratio Calculator
Calculate debt level and capital structure using total assets, total liabilities and equity.
Calculator
Leverage ratio calculator
Enter total assets, total liabilities and equity to calculate leverage ratio and debt-to-equity ratio.
Results provide a general financial interpretation. Sector structure, interest burden and cash flow should also be considered.
Leverage ratio formula
- Leverage ratio
- Total liabilities / total assets
- Equity ratio
- Equity / total assets
- Debt-to-equity ratio
- Total liabilities / equity
Example leverage ratio calculation
If a company has 1,000,000 TRY in total assets, 600,000 TRY in total liabilities and 400,000 TRY in equity, leverage ratio is 60%, equity ratio is 40% and debt-to-equity ratio is 1.50.
Frequently asked questions
What is leverage ratio?
Leverage ratio shows how much of a company's assets are financed by debt.
How is leverage ratio calculated?
It is calculated by dividing total liabilities by total assets. The result is usually interpreted as a percentage.
What does high leverage ratio mean?
A high leverage ratio may indicate that a company relies more on debt financing, which can increase financial risk.