4 KPIs To Measure Financial Leverage! Every Financial Analyst MUST Know!

These KPIs are used by equity research and financial analysts to measure the mix of debt and shareholder equity on a company balance sheet.

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[aniyah]

Accounting student here. I feel like I’m getting an edge with your channel, great supplement

[kanwalkhokhar]

Thanks alot. Your way of explaining is amazing

[aneezasonisoni]

Your way of explanation is very clear. Thanks for such a great video.

[soniqq]

Great information. Do you have something on how to review financial statements for small companies who are leasing equipment from you? Is there an added or different ratio used to determine their credit worthiness? Thanks!

[timothyfasttracktoyourpurp]

This is great info @thefinancialcontroller. Learning a lot from you. Been an accountant for over 7 years and on track to becoming a controller. This is expanding my knowledge.
Thanks!

[hamadabondok]

Thank you very much for this valued information really your are my best teacher in accounting field

[sandeepdodda]

Could you please help me whether Preference shares also included in equity and capital deployed ?

[rosmaryalgarin]

thanks for everything you said in this video

[danorion]

thanks again for this vid Bill.. where do you work btw? Seems like you're from WA State?

[GagandeepKaur-fwuf]

I have come across different versions of the definition for debt. I have seen some people use the total of interest-bearing short term and long term debt, excluding liabilities such as accrued expenses and accounts payable and i've also seen a more inclusive definition that takes into consideration all liabilities. In your video you showed debt include only long term debt. Is there a version that is more used over the other?

[AhMauy]

Thank you so much for sharing this knowledge. Can you do a video on auditing, please?

[iornqcm]

I've had great returns so far with GOGY. Considering buying more shares. Any opinions?

[nairobi]

I am a litte bit confused, when you said that the Total Assets / Total Equity should aim to be 1. That would mean, that on the right side of the Balance Sheet there is only Equity. No liabilities, provisions, long term debt, nothing. Just equity... Do you know any succeful company, or copmany in general being in this "ideal" condition?

[MrKasai]

I have 1 question, the 3rd and 4th KPIs are telling how much of the company´s assets are financed by debt n equity repectivily. But then, how can the formula be different?? In the 3rd KPI your are diving (Debt/Total) assets and in the 4th KPI you are doing (Total assets/total equity), HOW can total assets be in the denominator and then in numerator when what are you telling is the amount of assets financed by debt or equity?

[gomaaragab]

In first thanks for your a huge effort.
1- What I need to be junior financial analyst?
It's so hard to find a job for a junior financial analyst in Egypt.
Second, do you think that my work now as a site accountant will be beneficial for me to be financial analyst in the future?

Thanks 😊 in advance my lovely instructor in financial and accounting

[mushtaqali]

If the interest rate is high, will raising capital via equity not become expensive eventually?

[BishtAshok]

Hi sir,
It's an request if you can able to make an video on financial institutions budgeting model

[jelirosesoo._.]

I just got a job as Client Management Financial Analyst, what tips can u give me, hope you will upload more videos about it. Thank u

[monique]

Hi, back to finances subject in uni, very useful! Thks

[kakademayur]

You explained in very understandable manner.
I have a question- If an organization doesn't have sustainable cash inflow, high d/e ratio is not preferred. Is it because of fixed payment bearing capital will utilize all the inflow and there will be less cash for other usage? Or there is any different reason?