What this article covers: A reference for BrizoConsol's built-in Leverage & Risk KPIs — the formula behind each KPI and how to interpret the result. For a full list of all KPI categories, see Built-in KPIs Overview.
Leverage & Risk KPIs measure the balance between debt and equity financing and the business's ability to service its obligations.
KPI Reference
Formula: Total Liabilities ÷ Total Equity
What it measures: Financial leverage — how much the business relies on debt relative to shareholders' equity. A ratio above 1× means debt exceeds equity.
Formula: Total Liabilities ÷ Total Assets
What it measures: The proportion of assets financed by debt. Below 50% is generally conservative; above 70% indicates heavy reliance on borrowed funds.
Formula: Total Equity ÷ Total Assets (closing balance)
What it measures: The proportion of assets financed by shareholders' equity. A higher equity ratio indicates lower financial risk. Uses closing balance sheet figures.
Formula: EBIT ÷ Interest Expense
What it measures: The ability to service interest obligations from operating earnings. A higher ratio indicates a larger safety margin.
Formula: (Current Liabilities + Non-Current Liabilities) − Bank
What it measures: Total borrowings less cash on hand. Reflects the true debt burden after accounting for available liquidity. A negative Net Debt means the business holds more cash than it owes. Uses closing balance sheet figures.
Formula: Net Debt ÷ EBITDA
What it measures: How many years of EBITDA it would take to pay off net debt. A widely used leverage benchmark in credit analysis and debt covenants.
Formula: Total Debt ÷ (Total Debt + Total Equity)
What it measures: The proportion of the capital base funded by debt. A ratio above 50% means the business is more debt-funded than equity-funded.