Introduction to Leverage Ratios in Accounting

The video tutorial covers leverage ratios, focusing on capital structure ratios, particularly the equity ratio. It explains the importance of these ratios in assessing a company's financial health and risk. The tutorial provides a detailed explanation of the equity ratio, including its calculation and application in investment decisions. An example is given to illustrate the calculation of the equity ratio for two companies. The session concludes with a reminder of the importance of understanding ratios and a preview of the next session on debt ratios.

What new insight or understanding did you gain from this video?

Evaluate responses using AI:

OFF