Financial Leverage Ratio Calculator
Enter total assets and total equity to get the financial leverage ratio and implied debt.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
Financial leverage ratio is total assets ÷ total equity, and the gap between the two — total assets minus equity — is the company's implied total debt and other liabilities. A ratio of 1.0 means a company is entirely equity-funded with no leverage at all.
Lenders, equity analysts and the DuPont framework for decomposing return on equity all lean on this ratio, because leverage is a double-edged sword: borrowed capital can boost returns to shareholders when the business performs well, but it also means losses and fixed interest payments hit equity holders harder when it doesn't — so a rising leverage ratio is watched closely as a risk signal, not just a growth one.
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