Leverage ✨

: Often used by credit agencies, calculated as (Total Debt - Cash) / EBITDA . Leverage in Nonbank Financial Intermediation: Final report

: The most common metric, calculated as Total Debt / Shareholders' Equity , measuring dependence on borrowed funds. Leverage

Reports for individual companies or funds typically utilize these foundational ratios to gauge risk: : Often used by credit agencies, calculated as

Authoritative bodies monitor leverage levels to assess risks to the broader financial system: : Often used by credit agencies

: Assesses a firm’s ability to pay interest on its debt with its current earnings (EBIT / Interest Expense).

: The November 2025 report noted that vulnerabilities from financial-sector leverage remain notable, with hedge fund leverage reaching historical highs in early 2025.