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Financial Leverage Index

Financial Ratios[None]Ratio

Definition

Financial Leverage Index measures how well a company is using its debt. The Financial Leverage Index compares two other financial performance ratios: Return on Equity and a modified version of Return on Assets - mainly adding in the affects of Interest Expense and the Tax Rate.

Formula

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Tags

expense, tax, equity, debt, interest, asset

Metadata

Category: Financial Ratios · Added: May 17, 2026

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