Leverage Ratio Analysis Explained: Debt Ratio & Times Interest Earned Ratio for Ratio Analysis

Опубликовано: 25 Февраль 2026
на канале: Accofina
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Leverage Ratio Analysis Explained:
Debt Ratio & Times Interest Earned Ratio for Ratio Analysis.

Want to add Leverage Ratio Analysis to your financial analysis skill set? This accounting and finance tutorial will give you a grounding into the Debt Ratio and the Times Interest Earned Ratio, which are two of the most popular leverage ratios.

This accounting tutorial includes:
Introduction to Leverage Ratio Analysis.
Formula, Example & Explanation of the Debt Ratio.
Formula, Example & Explanation of the Times Interest Earned Ratio.
Review & Final Warning.

The debt ratio draws data from the balance sheet and the times interest earned ratio draws data from the income statement.

Leverage ratio analysis is all about assessing financial risk.
Leverage ratio analysis useful for prospective creditors, investors or managers themselves.
You can assess the strain on the business from long-term liabilities, inc. gauging the level of future obligations.
You can assess the ability to repay all debts with today’s assets.
And you can assess the ability to service the debt.

So whether you are an accounting or bookkeeping student, you are investing or whether you are a business manager, watch this video to have the fundamentals of leverage ratio analysis explained clearly and concisely.


I do hope you enjoy and get value from the video...happy viewing!

Cheers,
Axel

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