Finance

Consumer Leverage Ratio

Consumer Leverage Ratio

Leveraging Ratio Companies rely on a mixture of owners equity and also debt to financing their operations. A consumer leverage ratio is any one of several financial measurements that have a look at how much capital comes by means of debt (loans), or assesses the flexibility of a company to meet up with financial obligations. Customer Leverage Ratio = Entire household debt/ Disposable personal income Revise: The ratios are generally incorrect.