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Financial Analyzer » Quick Look: Leverage

Quick Look: Leverage
for Reporting Public Charities in CLP (Latest Returns)

Leverage is defined as total liabilities divided by total assets.
It measures the degree to which an organization relies on debt rather than its own resources--known as net assets--to fund its assets.

A note on IRS Form 990 financial ratios:  Although useful and informative as indicators, ratios are only one type of measure of the financial health and operations of a nonprofit. Financial ratios cannot tell you the full story of nonprofit's operations and impact. Click here to learn more.
Ratios are calculated as the ratio of state totals of the numerator and denominator for each ratio — not as medians or average of each organization.