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Q » Define leverage ratio.
06 Dec, 2025
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A » A leverage ratio is a financial metric used to assess the level of debt a company has relative to its equity or assets. It indicates how much of a company's operations are funded by debt versus shareholders' equity, reflecting financial risk and stability. Common leverage ratios include the debt-to-equity ratio and the debt-to-assets ratio, which help investors and analysts evaluate the firm's financial health and ability to meet its obligations.
06 Dec, 2025
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