Financial Leverage Ratio

The financial leverage ratio is also referred to as the debt to equity ratio. The financial leverage ratio indicates the extent to which the business relies on debt financing. Upper acceptable limit of the financial leverage ratio is usually 2:1, Read More

Cash Debt Coverage Ratio

Cash debt coverage ratio definition and explanation: The cash debt coverage ratio shows the percent of debt that current cash flow can retire. A cash debt coverage ratio of 1:1 (100%) or greater shows that the company can repay all Read More

Ratios Formulas and Explanations

List of Ratios Formulas and Definitions on This Website: Listed are the financial, accounting and business ratios pages that contain formulas to calculate ratios, definitions and explanations.