Leverage = Total Asset / Total Equity = DFL = DOL = DTL?

[archived_user]

Does “Leverage” at FRA which equals Total Asset / Total Equity is the same as DFL? or DOL or DTL?

 

[archived_user]

It’s none of those.

 

[archived_user]

It’s quite confusing because Total Assets/Total Equity is sometime referred to as “financial leverage.” But it is different to DFL.

 

[archived_user]

Zarathustra22 wrote: It’s quite confusing because Total Assets/Total Equity is sometime referred to as “financial leverage.” But it is different to DFL.

Welcome to the world of accounting!

 

[archived_user]

Oh i see, thanks!