Leverage Ratio (Historical)
Returns the historical leverage ratio (debt-to-equity ratio) for a company. This measures the proportion of debt financing relative to equity.
Formula
Leverage Ratio = Total Debt / Total Equity
Parameters
| Parameter | Required | Description |
|---|---|---|
| Symbol | Yes | Stock ticker symbol |
| Year | Yes | Fiscal year or period code |
| Quarter | No | Quarter 1-4 |
| TTM | No | "TTM" for trailing twelve months |
Interpretation
- < 1: More equity than debt
- = 1: Equal debt and equity
-
1: More debt than equity
Examples
=hf_Leverage_Ratio("AAPL", 2023, 4)=hf_Leverage_Ratio("MSFT", "ly")=hf_Leverage_Ratio("GOOGL", 2023, , "TTM")When to Use
- Analyzing capital structure
- Credit risk assessment
- Comparing leverage across peers
- Tracking leverage trends
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Equity multiplier | hf_Financial_Leverage() |
| Total debt amount | hf_Total_Debt() |
| Debt ratio (debt/assets) | Asset-based ratios |
Common Issues & FAQ
Q: What's a good leverage ratio? A: Varies by industry. Generally < 2 is conservative; > 4 may indicate high risk.
Q: Why might leverage be negative? A: Negative equity (accumulated losses exceed capital) can cause negative ratios.
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