@john-stills
Leverage ratio formulas include:
Bank Leverage Ratio:
Leverage Ratio
=
Total Assets
Bank Capital
Leverage Ratio=
Bank Capital
Total Assets
Financial Leverage Ratio:
Leverage Ratio
=
Total Assets
Shareholder Equity
Leverage Ratio=
Shareholder Equity
Total Assets
Leverage Ratio:
Leverage Ratio
=
Total Liabilities
Shareholder Equity
Leverage Ratio=
Shareholder Equity
Total Liabilities
These formulas help assess financial institutions' and companies' risk and returns.
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