Financial Ratios Questions And Answers. Balance sheet december 31 assets: In this example, total debt / active relationship tells you that 40% of corporation assets are.

Comments should be then made about the comparison of the above. Generally, the higher the ratio of debt to equity, the greater is the risk for the. The company current ratio is too low, the following actions can be taken.

Financial Leverage Multiplier Formula. Generally, a high equity multiplier indicates that a company is using a high amount of debt to finance. Financial leverage (equity multiplier) is the ratio of total assets to total equity.

The leverage formula is the simplest we can find to calculate within the world of finance. The formula, in this case, would include minority interest. = $14.50 billion÷$4.14 billion=3.50 ratiosys’s liabilities are 350% of shareholders’ equity which is very high for a retail company.