Leverage, Equity, and Capital Structure Ratios

This branch groups balance-sheet leverage and owner-financing ratios used by analysts and lenders.

In this section

• Debt-Equity Ratio: Another Name for the Company Leverage Mix
  Learn what the debt-equity ratio measures, how it overlaps with the debt-to-equity ratio, and what it does and does not tell you about financial risk.
• Equity Multiplier: Indicator of Financial Structure
  Equity Multiplier is a financial ratio that indicates the proportion of a company’s assets that are financed by shareholder equity, reflecting the company's financial leverage.
• Equity Ratio: The Share of Assets Financed by Owners Rather Than Debt
  Learn what the equity ratio measures, why it matters for financial resilience, and how it complements debt-based leverage ratios.
• Fixed-Asset-to-Equity Capital Ratio: How Much of the Asset Base Is Backed by Equity
  Learn what the fixed-asset-to-equity capital ratio measures, how to calculate it, and why lenders and analysts use it when judging long-term leverage.
• Long-Term Debt-to-Total Assets Ratio: How Much of the Asset Base Is Funded by Long-Term Borrowing
  Learn what the long-term debt-to-total assets ratio measures, how it differs from broader debt ratios, and why analysts use it to judge solvency.
• Total Debt-to-Total Assets Ratio: How Much of the Asset Base Is Financed by Debt
  Learn what the total debt-to-total assets ratio measures, how to calculate it, and how analysts use it to judge leverage and solvency risk.