A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

What is a leverage ratio? A leverage ratio is a financial measurement of debt. It puts an entity's debt into better context by showing it as a ratio relative to another financial metric like equity or ...

Opinions expressed by Entrepreneur contributors are their own. Being an entrepreneur for more than 30 years has taught me how important it is to track data about my business. But, I didn’t always take ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over ...

Momentum is building to improve capital rules. Recently, Federal Reserve Chair Janet Yellen publicly acknowledged that aspects of the banking agencies’ supplementary leverage ratio “may be having ...

In finance, leverage is a measure of a company's debt in relation to its total assets. When a business borrows heavily to finance growth plans, it stands to profit more when business is good. But ...

Regarding Thomas Hoenig’s “Why ‘Risk-Based’ Capital Is Far Too Risky” (op-ed, Aug. 12): Mr. Hoenig takes issue with our criticism of the leverage ratio, arguing, “The leverage ratio has proven most ...

A recent op-ed on this blog by Paul Kupiec misstates the Clearing House’s criticism of the supplementary leverage ratio. Kupiec’s article indicates that the Clearing House’s position is contained in a ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Investopedia / Jiaqi Zhou Capitalization ratios are financial ...

Leverage ratios compare a company's debt to financial metrics like equity or earnings. High leverage ratios suggest potential default risks, guiding investors on company selection. Industry-specific ...