Our Financial Analysis Success Kit is Ready!

Click to take a closer look at the Financial Analysis Success Kit Click the button to learn more about the Financial Analysis Success Kit Click the button to learn more about the financial analysis success it

Why you should take a look at the Financial Analysis Success Kit:

We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:
  1. The eBook "Learn Ratio Analysis In Minutes"

  2. The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

  3. A BONUS...Our eBook of "Key Financial Statement Terms"

  4. Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series

The result? You get all these professionally created tools for a great low price.

Learn more on our product page:

Take a Look

Quick Definition

Calculates how well a company is utilizing its debt.

[sc:kit02 ]

Financial Leverage Index Formula

Explanation of Financial Leverage Index

The Financial Leverage Index measures how well a company is using its debt. The Financial Leverage Index compares two other financial performance ratios: Return on Equity, and a modified version of Return on Total Assets – mainly adding in the affects of Interest Expense and the Tax Rate).

Importance of Financial Leverage Index

If the Financial Leverage Index is greater than 1, the company is using its debt in a positive way. Another way of saying this is its Return on Equity is larger than its Return on Assets. This ratio will be able to tell you that as borrowing increases for a company, whether or not the debt the company shouldered was overall beneficial or detrimental.