Leverage

Reports for individual companies or funds typically utilize these foundational ratios to gauge risk:

: Often used by credit agencies, calculated as (Total Debt - Cash) / EBITDA . Leverage in Nonbank Financial Intermediation: Final report Leverage

: The November 2025 report noted that vulnerabilities from financial-sector leverage remain notable, with hedge fund leverage reaching historical highs in early 2025. Reports for individual companies or funds typically utilize

: The most common metric, calculated as Total Debt / Shareholders' Equity , measuring dependence on borrowed funds. measuring dependence on borrowed funds.