Leverage ratios are types of financial ratios used to show the level of debt that a business may have against other accounts in its balance sheet, income statement, or cash flow statement. They are used to examine the value of equity in a business by scrutinizing the overall debt figures. This leverage ratios template demonstrates the calculations of the five most common ratios for financial analysis: 1. Debt-to-Assets Ratio = Total Debt / Total Assets 2. Debt-to-Equity Ratio = Total Debt / Total Equity 3. Debt-to-Capital Ratio = Total Debt / (Total Debt + Total Equity) 4. Debt-to-EBITDA Ratio = Total Debt / EBITDA ( Earnings Before Interest Taxes Depreciation & Amortization) 5. Asset-to-Equity Ratio = Total Assets / Total Equity These leverage ratios can be used to indicate how much a business is relying on money that is borrowed. Leverage can be both positive and negative, depending on the situation that a firm finds itself in, namely whether it is profiting or in danger of default.