Leverage ratio refers to the ratio of total assets to equity capital in the balance sheet. Leverage ratio is an index to measure the debt risk of a company, which reflects the repayment ability of the company from the side. The reciprocal of leverage ratio is leverage multiple. The higher the leverage ratio, the more easily it is affected by the rate of return and loan interest rate. Lever is a double-edged sword. When the enterprise is profitable, increasing leverage can expand profits, but if it is added too much, the risk will rise. Therefore, high leverage not only brings benefits, but also magnifies risks.
Tips: The above contents are for reference only.
Reply time: 202 1-08-3 1. Please refer to the latest business changes announced by Ping An Bank in official website.
[I know Ping An Bank] Want to know more? Come and watch I Know Ping An Bank ~
/paim/iknow/index.html