What is Leverage Ratio?
Answers were Sorted based on User's Feedback
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 |
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 |
what is non performing asset(NPA)
what is the difference betwen p & l a\c and income & expenditure statement
What do you know about the formula of Simple interest and Compound Interest?
What are the different types of 'Fixed Deposits'?
What do you know about Deflation?
Tell me what is gross profit and net profit?
What is mean by Duty-Draw Back? And what's of benefit under Duty-Drawback?... Please explain.
What are different types 'tax receipts'?
differencess betwen operating expencess an differed revenue expenditure.
How your skills can be useful to LIC?
any one can explain the Dealer Management in the automobolie company?
What are the components of the monetary policy of rbi?
Business Administration (517)
Marketing Sales (1279)
Banking Finance (3209)
Human Resources (747)
Personnel Management (68)
Hotel Management (29)
Industrial Management (113)
Infrastructure Management (14)
IT Management (97)
Supply Chain Management (16)
Operations Management (39)
Funding (79)
Insurance (494)
Waste Management (1)
Labor Management (48)
Non Technical (73)
Business Management AllOther (546)