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# Financial Leverage Ratio Calculator

The Leverage ratio is a financial measure of a company's ability to meet its future financial needs. The ratio assesses how much capital comes in the form of debts or loans. It is also known as Debt to equity ratio. A leverage ratio is used to measure a company's mix of operating costs, giving an idea of how changes in output will affect operating income. Enter the required values and the financial leverage ratio calculator would calculate and update the leverage ratio in terms of percentage.

## Debt To Equity Ratio Calculation

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The Leverage ratio is a financial measure of a company's ability to meet its future financial needs. The ratio assesses how much capital comes in the form of debts or loans. It is also known as Debt to equity ratio. A leverage ratio is used to measure a company's mix of operating costs, giving an idea of how changes in output will affect operating income. Enter the required values and the financial leverage ratio calculator would calculate and update the leverage ratio in terms of percentage.

#### Formula:

Financial Leverage Ratio = Total Debt / Total Equity

#### Example

A company's total debt is 1000\$ and total equity is 500\$.
Financial Leverage Ratio = 1000 / 500
= 2