Leverage Ratio Calculator

Leverage ratios measure how much debt a business uses to finance its assets and operations. These ratios help assess financial risk, solvency, and long-term stability.

Lenders, investors, and analysts rely on leverage ratios to evaluate whether a company can meet its debt obligations and survive economic downturns. Excessive leverage increases financial risk, while very low leverage may limit growth opportunities.

Use this free leverage ratio calculator to instantly analyze debt levels, solvency, and financial risk with real-time explanations and guidance.

Enter Balance Sheet & Income Statement Values

Financial Inputs

Total Assets

Total Liabilities

Shareholders’ Equity

EBIT (Earnings Before Interest & Tax)

Interest Expense

Leverage Ratios & Analysis

Debt Ratio

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Debt-to-Equity Ratio

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Equity Ratio

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Interest Coverage Ratio

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Financial Leverage Ratio

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Frequently Asked Questions

What is a leverage ratio?

A leverage ratio measures how much debt a company uses relative to its assets or equity.

Are high leverage ratios risky?

Yes. Higher leverage increases financial risk and vulnerability during economic downturns.

Is this leverage ratio calculator free?

Yes. This tool is completely free and requires no registration.

Is my data saved?

No. All calculations occur in your browser. No data is stored or shared.

Related Financial Tools

To understand how Leverage Ratios are used in real-world financial analysis, you can refer to authoritative explanations provided by Investopedia.