Leverage ratios indicate the extent to which the venture has used debt and its ability to meet debt obligations.

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Leverage ratios are used to assess the extent of a company's debt and its ability to meet its debt obligations. These ratios provide information on the amount of debt used by the company to finance its operations and the level of risk associated with this debt. Common leverage ratios include debt-to-equity ratio, debt-to-asset ratio, and interest coverage ratio.

Leverage Ratios Indicate the Extent to Which the Venture Has