Is leverage a familiar word, other than from ransom as seen in movies? What is leverage in accounting? There is a metric calculation in place to determine how much capital comes in the form of loans or assesses the ability of a company to meet its financial obligations. If the amount of debt held by a company is known it is useful in evaluating whether the company can pay off its debts as and when they are due. Download the presentation Leverage Ratios to understand the topic more.

Aparika Sharma

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