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what is the financial leverage ratio?

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Question added by Deleted user
Date Posted: 2013/06/16
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

The degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt; they may also be unable to find new lenders in the future. Financial leverage is not always bad, however; it can increase the shareholders' return on investment and often there are tax advantages associated with borrowing. also called leverage.

Israa Maky
by Israa Maky , محاسب قانوني , مكتب محاسبه قانوني ا\ اسماعيل محمد عبد الحليم

is the possibility of defining acertain percentage [1:5]

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