Home > Glossary > L > Leverage Ratio
Illustration

Leverage Ratio

The leverage ratio measures how much of a company’s assets are financed through debt. It helps assess financial stability and risk exposure. Common leverage ratios include debt-to-equity and debt-to-assets, which show how dependent a company is on borrowed funds.

More Items

Lease Term

Lease term refers to the duration over which a lease agreement is in effect, including non-cancellable periods and optional extensions…

Liquidation Value

Liquidation value is the estimated amount that could be realised if a company’s assets were sold quickly, typically under distressed…

Line of Credit

A line of credit is a flexible financing arrangement that allows businesses to borrow funds up to a predetermined limit…