WOLFRAM|DEMONSTRATIONS PROJECT

Leverage Ratios

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select the NAICS industry code
532111
532210
532291
533120
assets in ($K)
enter values from balance sheet
total assets
300
liabilities in ($K)
enter values from balance sheet
debt
300
total liabilities
500
owners equity
500
Financial Ratios: Leverage Ratios
parameter
value
industry average
debt to equity ratio
0.600
0.721
debt ratio
1.67
1.39785
In business, there are many situations where a person would want to compare a firm's performance against the industry as a whole. These situations include strategic planning, business acquisition, the sale of a business, and during loan applications. This Demonstration helps in understanding a firm's performance and as a comparative tool against industry standards. In this example, after entering balance sheet details, the firm's performance on two key ratios can be reviewed against selected industry averages. Industry standards can be selected based on the NAICS industry code for the firm.