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TeachMeFinance.com - explain Leverage ratio Leverage ratio The term 'Leverage ratio' as it applies to the area of energy can be defined as ' A measure that indicates thefinancial ability to meet debt service requirements and increase the value of the investment to the stockholders. (i.e. the ratio of total debt to total assets)'. Previous 5 Terms: Level Level of Free Convection Level of protection (LOP) Levelized cost lever Next 5 Terms: leveret LEVP Levy LEWP lexicology About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.