Leverage Ratio
/ˈlɛvərɪdʒ ˈreɪʃiˌoʊ/
Definitions
- (n.) A financial metric used to assess a company's debt level relative to its equity, often required by law or regulation to ensure solvency and risk management.
The regulator mandated banks maintain a minimum leverage ratio to prevent excessive borrowing.
Forms
- leverage ratio
- leverage ratios
Related terms
See also
Commentary
In legal contexts, leverage ratio disclosures and compliance are crucial for regulatory oversight of financial institutions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.