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What Is a Leverage Ratio and Why Is It Crucial for Businesses?

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A leverage ratio is a financial metric that measures the extent to which a business relies on debt to finance its operations compared to its equity or assets. It reflects the company’s ability to meet its financial obligations and indicates overall financial health. High leverage can boost growth potential but also increases risk, while low leverage suggests stability with limited exp... https://thealgebragroup.com/leverage-ratio/

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