Tuesday, February 15, 2011

Leverage Ratios


Leverage Ratios

            Leverage Ratios indicate the company’s long term solvency and rate of return on their loans. It shows the long term ability of a company to meet outside liabilities out of total assets. Leverage ratios are used to assess the financial risk of a company. Leverage ratios measure the degree of protection of suppliers of long term funds.   

No comments: