# Leverage ratio

> Leverage ratio is a leverage and coverage metric, calculated as Net debt ÷ EBITDA (or total debt ÷ EBITDA). Definition is usually specified in the loan agreement, not by convention.

Source: https://lopifi.com/glossary/leverage-ratio
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is leverage ratio?** Leverage ratio is a leverage and coverage metric, calculated as Net debt ÷ EBITDA (or total debt ÷ EBITDA).

## Formula

`Net debt ÷ EBITDA (or total debt ÷ EBITDA)`

## Note

Definition is usually specified in the loan agreement, not by convention

- **Category:** Leverage & coverage
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** net-debt, ebitda