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Financial Leverage Ratio: Meaning and Risk Analysis

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The financial leverage ratio indicates how much debt a company uses to finance its assets. It highlights the balance between debt and equity, offering insights into financial risk and stability. A higher ratio reflects greater reliance on borrowed capital, which can increase profitability but also heightens risk during downturns. A lower ratio suggests a conservative approach with red... https://thealgebragroup.com/leverage-ratio/

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