Leverage Ratio Calculator

Leverage Ratio Calculator will provide an overview of the company’s earnings, equity, and assets in relation to its debt. These ratios are used by investors, BOD, creditors, and other stakeholders of the company to measure the financial strength of the company. These are the financial indices that help analyze the capital structure, financial obligation, and its ability to clear these obligations. The leverage ratio calculator will make it easy for companies to calculate the same.

The formula for calculating different leverage ratios is:

Debt to EBITDA = Total Debt/EBITDA (earnings before interest, tax, depreciation, and amortization)

Debt to Capital = Total Debt / (Total Debt + Total Equity)

Debt to Equity = Total Debt / Total Equity

Debt to Asset = Total Debt / Total Asset

Leverage Ratio Calculator

How to Calculate using Calculator?

For using the calculator, the user simply has to insert the following figures in the calculator:

Total Debt – The amount of total debt can easily be obtained from the Balance Sheet of the company.

EBITDA – EBITDA can be calculated from the values available in the Profit & Loss Statements of the company.

Total Equity – The value of total equity is simply available on the Balance sheet of the Company.

Total Assets – The value of total assets can also be obtained from the Balance Sheet of the company.

Excel Calculator – Leverage Ratio 

You can also download our excel based calculator for leverage ratio.

Excel Calculator for Leverage Ratio  (116 downloads )

Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

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