{"id":3913,"date":"2023-03-08T19:51:58","date_gmt":"2023-03-08T19:51:58","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/financial-leverage-ratio\/"},"modified":"2023-03-08T19:51:58","modified_gmt":"2023-03-08T19:51:58","slug":"financial-leverage-ratio","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/financial-leverage-ratio\/","title":{"rendered":"Financial Leverage Ratio"},"content":{"rendered":"<p>\nFinancial Leverage Ratio refers to certain ratios which measure a businesses\u2019 ability to meet its long-term debt obligations. These ratios are also known as \u2018Debt ratios\u2019. Long-term here means one year or longer. The debt obligations can include interest payments, principal amount and other fixed liabilities.<\/p>\n<h2>Financial Leverage Ratio Explained<\/h2>\n<p>These ratios compare the overall debt burden of a company to its assets or equity. The resulting figures help in understanding whether the company&#8217;s assets belong to its shareholders or its creditors. The company is said to be less leveraged, if the shareholders own more assets. If creditors own a majority of assets, the company is said to be highly leveraged. These ratios help management and investors in understanding the capital structure of a company and the level of risk associated with it.<\/p>\n<h2>Key Financial Leverage Ratios<\/h2>\n<p>Key Financial Leverage Ratios are:<br \/>\n1. Debt Ratio<br \/>\n2. Debt To Equity Ratio<br \/>\n3. Equity Ratio<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Financial Leverage Ratio refers to certain ratios which measure a businesses\u2019 ability to meet its long-term debt obligations. These ratios are also known as \u2018Debt ratios\u2019. Long-term here means one year or longer. The debt obligations can include interest payments, principal amount and other fixed liabilities. Financial Leverage Ratio Explained These ratios compare the overall [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3913","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3913"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3913\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}