This formula would include minority interest and preferred shares in the denominator. This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.

Leverage ratios—like most financial metrics used by investors to evaluate companies—are most useful when comparing two or more companies within the same industry. Different industries have ...

Using the formula above ... is failing to take advantage of its available financial leverage. A company with an interest ...

The formula for the personal D/E ratio is ... “Gearing” is a term for financial leverage. Gearing ratios focus more heavily on the concept of leverage than other ratios used in accounting ...

A debt-to-equity ratio measures a company's financial leverage by comparing total liabilities ... How to calculate debt-to-equity ratio (D/E formula) The debt-to-equity calculation is fairly ...

Debt/Equity (D/E) is an important financial ratio that measures a company's financial leverage. You can calculate it by dividing a company's total liabilities by its shareholder equity.