Financial Leverage
Financial leverage is a financial metric that reflects the extent to which a company uses debt to finance its operations. It is the ratio of total debt to total equity of a company. In other words, it measures how much debt a company has compared to the equity it has raised from shareholders. A higher financial leverage means that a company has taken on more debts to finance its operations, which can potentially increase profits but also increases financial risk. A lower financial leverage means that a company has limited its debt and relies more on equity financing, which could lead to lower returns but also reduces financial risk.
Additional Details
| Metric Name |
Type |
Default Period Type |
| fin_leverage |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
number |
float |