Financial Leverage Calculator


Financial leverage can be explained as the firm's ability to utilize the borrowed money on the typical business. The financial leverage ratio needs to be as low as possible and if it is higher, the firm might pretty soon meet the risk of bankruptcy.

The formula to calculate financial leverage is calculated by:

Financial Leverage Formula

Enter the total debt and shareholders equity in the below online financial leverage calculator and click calculate button to find the output.


Total Debt:
Shareholders Equity:
Financial Leverage:





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