MarketXLS

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

Syntax

=hf_Leverage_Ratio(Symbol, Year, [Quarter], [TTM])
Excel Desktop (Windows)

Parameters

symbolstringRequired

Stock ticker symbol

yearstringRequired

Fiscal year or period code

quarterstring

Calendar quarter (1-4)

TTMstring

Set to 'TTM' for trailing twelve months

Returns

number

Leverage ratio (debt to equity)

Examples

=hf_Leverage_Ratio("AAPL", 2023, 4)
Q4 2023 D/E ratio
=hf_Leverage_Ratio("MSFT", "ly")
Last year leverage
=hf_Leverage_Ratio("GOOGL", 2023, , "TTM")
TTM leverage ratio

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

What's a good leverage ratio?

Varies by industry. Generally < 2 is conservative; > 4 may indicate high risk.

Why might leverage be negative?

Negative equity (accumulated losses exceed capital) can cause negative ratios.

Related Formulas

More MarketXLS Historical Fundamentals formulas you can use in the same worksheet:

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