Financial Leverage Ratio

CFA Level I
#1

What is the financial leverage ratio? I cannot find one ratio (there seems to be multiple definitions online)…

#2

Assets / Equity

#3

Or equivalently

Leverage Ratio = 1 + Debt/Equity = 1/(1-Debt/Assets)

There are times when you might be given either the Debt Ratio (D/A) or Debt/Equity ratio when you need the Leverage Ratio, so knowing these is sometimes useful and can save a little time.