Practical Law Glossary Item 4-382-3578 (Approx. 2 pages)
Glossary
Leverage Ratio
Also known as the debt/EBITDA Ratio. The ratio of debt (borrowings) to EBITDA, frequently expressed as a percentage or ratio. It is often used as a measure of the risk attached to a company because a highly leveraged company has a large interest burden which must be met whether or not profits are made.