What is Leverage Ratio?

Answers were Sorted based on User's Feedback



What is Leverage Ratio?..

Answer / neethu

Any ratio used to calculate the financial leverage of a
company to get an idea of the company's methods of
financing or to measure its ability to meet financial
obligations. There are several different ratios, but the
main factors looked at include debt, equity, assets and
interest expenses.

Is This Answer Correct ?    20 Yes 2 No

What is Leverage Ratio?..

Answer / chandrasekhar hota

2 types

i> Debt-Equity Ratio = Total Debt / Total Equity
or D/E Ratio = Outsider's funds / Shareholder's funds

O's funds=>debentures+long ter loans+current liabilities
S's funds=>equity share capital+preference share
capital+share premium+reserve surplus

ii> Interest Coverge Ratio = EBIT / Interest Charges

EBIT=>Earnings Before Interest and Taxes

Is This Answer Correct ?    9 Yes 10 No

Post New Answer

More Banking Finance Interview Questions

what a beta is in security marketing?

5 Answers  


What do you know about the formula of Simple interest and Compound Interest?

0 Answers   IBPS,


What is the branding line of Bank of Baroda?

0 Answers   Bank of Baroda,


When should banks not pay the cheque?

0 Answers  


Can preference shares are traded on stock exchanges?

1 Answers   TCS,






What is CRR and SLR?

0 Answers   IBPS, State Bank Of India SBI,


Explain the role of chief actuaries?

0 Answers  


what is the official criterion for bluechip companies? what is sensex?

2 Answers   HDFC,


Give some examples of RRBs.

0 Answers   Nabard,


What is GNP?

1 Answers  


What is the significance of ifsc code?

0 Answers  


Explain in a sentence or two, each of the elements of a Business Plan and why it is necessary.

0 Answers  


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)