4 KPIs To Measure Financial Leverage! Every Financial Analyst MUST Know!

These KPIs are used by equity research and financial analysts to measure the mix of debt and shareholder equity on a company balance sheet.
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All views expressed on my channel are mine alone. Not intended as financial or professional advice.

[@aniyah7491]

Accounting student here. I feel like I’m getting an edge with your channel, great supplement

[@kanwalkhokhar9092]

Thanks alot. Your way of explaining is amazing

[@hafizhussienelneelhassan5941]

Thanks a lot for your kind efforts...

[@aneezasonisoni9866]

Your way of explanation is very clear. Thanks for such a great video.

[@TheFinancialController]

Great 😅

[@soniqq1]

Great information. Do you have something on how to review financial statements for small companies who are leasing equipment from you? Is there an added or different ratio used to determine their credit worthiness? Thanks!

[@hamadabondok3606]

Thank you very much for this valued information really your are my best teacher in accounting field

[@TheFinancialController]

Glad to hear that

[@jacobsphamandlayoko2008]

You are absolutely amazing.

[@aspectoflife]

very good ,short n compact,thanks

[@TheFinancialController]

Glad it helped

[@yinyin7614]

Like your channel. Recommended.

[@chongsweethong3581]

I love your videos 😍 keep going bro

[@TheFinancialController]

Many thanks chong:)

[@SureshKumar-hq8ef]

Very good information Sir 💐

[@timothyfasttracktoyourpurp8051]

This is great info @thefinancialcontroller. Learning a lot from you. Been an accountant for over 7 years and on track to becoming a controller. This is expanding my knowledge. Thanks!

[@TheFinancialController]

Thanks Tim!

[@eishercherigo3084]

Pure gold as always!

[@TheFinancialController]

Thank you!

[@thehoneydeev]

@@TheFinancialController preparing for my CMA, and your videos are gifts sent from heaven. Just know that you are touching lives!

[@maheshmahapatra7557]

Nice explanation

[@sandeepdodda2890]

Could you please help me whether Preference shares also included in equity and capital deployed ?

[@Tajmalik327]

Insightful

[@rosmaryalgarin9292]

thanks for everything you said in this video

[@TheFinancialController]

Thanks Rosemary

[@rosmaryalgarin9292]

ok

[@AhMauy]

Thank you so much for sharing this knowledge. Can you do a video on auditing, please?

[@TheFinancialController]

Sure thing!

[@AhMauy]

@@TheFinancialController thank you 🙏😊👍

[@danorion369]

thanks again for this vid Bill.. where do you work btw? Seems like you're from WA State?

[@user-io5rn1qc8m]

I've had great returns so far with GOGY. Considering buying more shares. Any opinions?

[@GagandeepKaur-fw4uf]

I have come across different versions of the definition for debt. I have seen some people use the total of interest-bearing short term and long term debt, excluding liabilities such as accrued expenses and accounts payable and i've also seen a more inclusive definition that takes into consideration all liabilities. In your video you showed debt include only long term debt. Is there a version that is more used over the other?

[@rukam3]

I think its interest bearing debt and they tend to look at the Long term debt. Maybe the assumption being the current debt will be paid within one year.

[@drbagdadi]

Thanks!

[@TheFinancialController]

this means a lot! Thank you

[@mushtaqali630]

If the interest rate is high, will raising capital via equity not become expensive eventually?

[@BishtAshok]

Hi sir, It's an request if you can able to make an video on financial institutions budgeting model

[@TheFinancialController]

Ok

[@nairobi203]

I am a litte bit confused, when you said that the Total Assets / Total Equity should aim to be 1. That would mean, that on the right side of the Balance Sheet there is only Equity. No liabilities, provisions, long term debt, nothing. Just equity... Do you know any succeful company, or copmany in general being in this "ideal" condition?

[@gomaaragab4921]

In first thanks for your a huge effort. 1- What I need to be junior financial analyst? It's so hard to find a job for a junior financial analyst in Egypt. Second, do you think that my work now as a site accountant will be beneficial for me to be financial analyst in the future? Thanks 😊 in advance my lovely instructor in financial and accounting

[@TheFinancialController]

Gomaa working as an accountant is a great start for becoming a financial analyst. I find that the best Fin Analysts come out of accounting backgrounds. Your best bet to transform into FA is to start to slowly create financial analyses at your current job and find someone higher than you to present it to and get feedback. This can be your boss of someone similar. Continue down that path and research your analysis further and make it better, then keep adding that stuff in your resume, replacing some of the less important accounting skills on the resume. These financial analyses can be around Job Profitability, profitability per full time employee, cost per employee, new job acquisition cost. All of these are things you can google and find more info on.

[@gomaaragab4921]

@@TheFinancialController 😊😊i can't thank you enough.

[@monique6241]

Hi, back to finances subject in uni, very useful! Thks

[@TheFinancialController]

Thanks 🙏

[@jelirosesoo._.]

I just got a job as Client Management Financial Analyst, what tips can u give me, hope you will upload more videos about it. Thank u

[@TheFinancialController]

Sure

[@kakademayur]

You explained in very understandable manner. I have a question- If an organization doesn't have sustainable cash inflow, high d/e ratio is not preferred. Is it because of fixed payment bearing capital will utilize all the inflow and there will be less cash for other usage? Or there is any different reason?

[@TheFinancialController]

If a company doesn’t have sufficient cash flow, it will inevitably have to rely on debt for its capital. Companies with insufficient cash flow typically have high debt to equity ratio.

[@amiramir-bh5dk]

Hi Bill, this week I haven't received yet the regular weekly email from you!!!.

[@TheFinancialController]

Hey Amir. Just taking some time off with the family:)

[@amiramir-bh5dk]

@@TheFinancialController Nice, enjoy it😊

[@malikhill920]

Financial leverage ratio is Debt/Equity, not asset to equity. I'm not sure how no one has commented this yet.

[@Obolix101]

CFA teaches it at assets / equity what's your source?

[@peterapochi6603]

Thanks a lot. I'm one of your invisible students on KZbin.

[@TheFinancialController]

Far from invisible Pete! Thanks man

[@keyatia6657]

👍

[@PatrickBateman12420]

I don't think those are KPIs ....a KPI needs a comparison (e.g., too low/too high). What you show are metrics.

[@jeycee6807]

😍😍😍😍😍😍

[@TheFinancialController]

:)