The formula to calculate financial leverage is what the financial leverage ratio equals to the total company debt and the shareholders equity. Shareholders, investors and both long and short term creditors are interested in the financial leverage of a company. Financial leverage calculators are useful tools in determining to what extent the business is relying on financing through debt.
. Calculators can be found at http://www.bizwiz.ca/financial_leverage_ratio.html. Another helpful site is located at http://www.bizwiz.ca/leverage_ratio_calculation_formulas/debt_equity_ratio.html.
