The ﬁnancial leverage ratio compares the amount of capital supplied by creditors to the amount supplied by owners.

Name: The ﬁnancial leverage ratio compares the amount of capital supplied by creditors to the amount supplied by owners.
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The financial leverage ratio, also known as debt-to-equity ratio, measures the proportion of debt and equity used to finance a company's assets. It compares the amount of capital provided by creditors (debt) to the amount provided by owners (equity).

The ﬁNancial Leverage Ratio Compares the Amount of Capital Supplied