Leverage Direct

: Assesses a firm’s ability to pay interest on its debt with its current earnings (EBIT / Interest Expense).

: Often used by credit agencies, calculated as (Total Debt - Cash) / EBITDA . Leverage in Nonbank Financial Intermediation: Final report 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. : Assesses a firm’s ability to pay interest