Reports for individual companies or funds typically utilize these foundational ratios to gauge risk:
: 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 Leverage
: Often used by credit agencies, calculated as (Total Debt - Cash) / EBITDA . Leverage in Nonbank Financial Intermediation: Final report Reports for individual companies or funds typically utilize
: The most common metric, calculated as Total Debt / Shareholders' Equity , measuring dependence on borrowed funds. : Measures the percentage of assets financed through debt
: Measures the percentage of assets financed through debt.
: The November 2025 report noted that vulnerabilities from financial-sector leverage remain notable, with hedge fund leverage reaching historical highs in early 2025.
Authoritative bodies monitor leverage levels to assess risks to the broader financial system: