Leverage Guide

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

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

: Measures the percentage of assets financed through debt. Leverage

: The Financial Stability Board (FSB) released a final report specifically addressing risks created by leverage in Nonbank Financial Intermediation (NBFI), such as hedge funds and life insurers.

: The November 2025 report noted that vulnerabilities from financial-sector leverage remain notable, with hedge fund leverage reaching historical highs in early 2025. : The most common metric, calculated as Total

Authoritative bodies monitor leverage levels to assess risks to the broader financial system:

: Managed by the Office of Financial Research , this provides ongoing reports on leverage by strategy, size, and borrowing type (e.g., repo or prime brokerage) based on SEC Form PF data. Core Leverage Reporting Metrics : The Financial Stability Board (FSB) released a

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