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Analyzing Financial Ratios - Leverage 1.5 Credits

Mar 20, 2024, 11:00 AM ET

Analyzing Financial Ratios - Leverage 1.5 Credits

  • Lynn Fountain

    CRMA, CPA (US), CGMA

  • Rating

    4.4

  • Reviewed on

    February, 2025

  • Subject Area

    Accounting

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Mar 20, 2024, 11:00 AM ET

Learning Objective

  • To review basic ratio analysis math concepts.
  • To identify the types of leverage ratios.
  • To evaluate the purpose and calculation of various leverage ratios including Debt-to-Assets Ratio, Debt-to-Equity Ratio, Debt-to-Capital Ratio, Debt-to-EBITDA Ratio, and Equity Asset Ratio.
  • To explore the concept of capital structure ratios: Debt to capitalization ratio and Degree of financial leverage.
  • To discuss a comprehensive example of ratio calculation.

Course Overview

Financial ratios are financial metrics that determine relationships between aspects of a company’s operations and financial position.

This CPE course is part of the series on financial ratios and is focused on leverage ratios. Leverage is created through various situations including when:

  • A company takes on debt to purchase specific assets.
  • A company borrows money based on the overall creditworthiness of the business.
  • A company borrows money to finance an acquisition. 
  • A private equity firm (or other company) does a leveraged buyout.
  • An individual works with options, futures, margins, or other financial instruments.

Equity investors borrow money to leverage their investment portfolio. A leverage ratio looks at how much capital comes in the form of debt (loans) or assesses the ability of a company to meet its financial obligations. The leverage ratio is important given that companies rely on a mixture of equity and debt to finance their operations.

Major topics discussed in this online CPE webinar by Lynn Fountain:

  • How is leverage created?
  • Leverage Risks
  • Capital Structure and Debt/Equity
  • Degree of financial leverage
  • Debt/EBITDA
  • Equity/Assets
  • Comprehensive example to illustrate how to calculate and interpret the various ratios.

This CPE Accounting webinar highlights leverage ratios, their purpose, calculation, and meaning.

On Demand Credits for All Qualifications

Live Webinar Credits for All Qualifications

License details Credits Status
Accounting for Certified Public Accountants (CPA-US) 1.5 CPE Approved
Accounting for CPA in Canada 1.5 CPD Eligible
Financial Accounting for Certified Internal Auditors (CIA) 1.5 CPE Eligible
Financial Reporting for Certified Management Accountants (CMA) 1.5 CPE Eligible
Financial Reporting for Chartered Global Management Accountants (CGMA) 1.5 CPE Eligible
Accounting for Chartered Financial Analyst (CFA) 1.5 PL Eligible
Accounting for Delaware Licensed Public Accountant (DE-LPA) 1.5 CPE Eligible
Accounting for Certified Government Financial Manager (CGFM) 1.5 CPE Eligible
Accounting for Certified Fraud Examiner (CFE) 1.5 CPE Eligible
Accounting for Internal Audit Practitioner (IAP) 1.5 CPE Eligible
Association of Chartered Certified Accountants (ACCA) 1.5 CPD Eligible
Chartered Accountant - ICAEW 1.5 CPD Eligible
Financial Reporting for Certified Financial Forensics (CFF) 1.5 CPD Eligible
Financial accounting for Certified Valuation Analyst (CVA) 1.5 CPE Eligible
Accounting for Qualification in Internal Audit Leadership (QIAL) 1.5 CPE Eligible
Accounting for Iowa Licensed Public Accountant (IA-LPA) 1.5 CPE Eligible
Accounting for Maine Licensed Public Accountant (ME-LPA) 1.5 CPE Eligible
CPA - Ireland 1.5 CPD Eligible
Chartered Accountants - Scotland 1.5 CPD Eligible
Chartered Accountants - Ireland (CAI) 1.5 CPD Eligible
Financial accounting concepts for Certified FP&A Professional (FP&A) 1.5 CE Eligible
Financial accounting for Certified Business Appraiser (CBA)/Master Certified Business Appraiser (MCBA) 1.5 CPE Eligible
Accounting for CIPM 1.5 PL Eligible
License details Credits Status
Accounting for Certified Public Accountants (CPA-US) 1.5 CPE Approved
Accounting for CPA in Canada 1.5 CPD Eligible
Financial Accounting for Certified Internal Auditors (CIA) 1.5 CPE Eligible
Financial Reporting for Certified Management Accountants (CMA) 1.5 CPE Eligible
Financial Reporting for Accredited in Business Valuation (ABV) 1.5 CPD Eligible
Financial Reporting for Chartered Global Management Accountants (CGMA) 1.5 CPE Eligible
Accounting for Chartered Financial Analyst (CFA) 1.5 PL Eligible
Accounting for Delaware Licensed Public Accountant (DE-LPA) 1.5 CPE Eligible
Accounting for Certified Government Financial Manager (CGFM) 1.5 CPE Eligible
Accounting for Certified Fraud Examiner (CFE) 1.5 CPE Eligible
Accounting for Internal Audit Practitioner (IAP) 1.5 CPE Eligible
Association of Chartered Certified Accountants (ACCA) 1.5 CPD Eligible
Chartered Accountant - ICAEW 1.5 CPD Eligible
Financial Reporting for Certified Financial Forensics (CFF) 1.5 CPD Eligible
Financial accounting for Certified Valuation Analyst (CVA) 1.5 CPE Eligible
Accounting for Qualification in Internal Audit Leadership (QIAL) 1.5 CPE Eligible
Accounting for Iowa Licensed Public Accountant (IA-LPA) 1.5 CPE Eligible
Accounting for Maine Licensed Public Accountant (ME-LPA) 1.5 CPE Eligible
Financial accounting concepts for Certified FP&A Professional (FP&A) 1.5 CE Eligible
CPA - Ireland 1.5 CPD Eligible
Chartered Accountants - Scotland 1.5 CPD Eligible
Chartered Accountants - Ireland (CAI) 1.5 CPD Eligible
Financial accounting for Certified Business Appraiser (CBA)/Master Certified Business Appraiser (MCBA) 1.5 CPE Eligible
Accounting for CIPM 1.5 PL Eligible

Additional Information

Credits

1.5

Course Level

Basic

Instructional Method

QAS Self Study

Group Internet Based

Pre-requisites

None

Advance Preparation

None

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MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors.

Explore CPA CPE Courses with MY-CPE. Our online offerings make it easy for you to fulfill your CPA CPE requirements. With a broad selection of topics taught by experienced professionals, you can enjoy flexible scheduling and self-paced learning. Say goodbye to traditional methods and begin your path to professional growth with us today!

About Instructor

Advance Your Career with Lynn Fountain's CE/CPE/CPD Webinars

Lynn Fountain , CRMA, CPA (US), CGMA

Owner, Lynn Fountain Consulting and Training

  • 4.5
  • rating
  • rating
  • rating
  • rating
  • rating

Lynn Fountain has over 39 years of experience spanning public accounting, corporate accounting and consulting. 20 years of her experience has been working in the areas of internal and external auditing and risk management. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance.  Lynn has held two Chief Audit Executive (CAE) positions for international companies.   In one of her roles as CAE, she assisted in the investigation of a multi-million-dollar fraud scheme perpetrated by a vendor that spanned 7 years and implicated 20 employees.  The fraud was formally investigation by the FBI and resulted in 5 indictments estimating a $13M fraud loss.

Ms. Fountain is currently engaged in her own consulting and training practice.  She has successfully executed on several consulting assignments spanning areas of accounting, risk, ERM and internal audit.  She is a highly sought-after trainer and international speaker and has produced hundreds of courses delivered through seminars, conferences and on-demand training.  She is the author of three separate technical books.  

  • Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”.
  • Leading the Internal Audit Function
  • Ethics and the Internal Auditor’s Dilemma

Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CPA, CGMA, CRMA credentials. 


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Self Study QAS (Quality Assurance Service) is a NASBA and other regulatory bodies approved program designed for Professionals to complete their Continuing Professional Education credits through self-paced, interactive courses that meet the highest standards of quality and compliance. We are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies.

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To earn CPE credits, you must complete the self-study course, pass the required assessments, and submit the necessary documentation. Credits are awarded based on the completion of course hours and successfully passing the assessments.

Are the self-study courses approved by NASBA and other regulatory bodies?

Yes, all our self-study courses are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies, ensuring they meet the rigorous standards for quality and educational content set by these organizations.

What are the requirements to maintain compliance with self-study courses?

To maintain compliance, you must follow the guidelines set by NASBA and other regulatory bodies, which include completing the course within the specified timeframe, passing the assessments, and keeping accurate records of your learning activities.

How can I access my course completion certificates?

After successfully completing a self-study course and passing the assessments, you can access and download your course completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies for compliance and reporting purposes.

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We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

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What is a Live Webinar Group Internet-Based Credit?

A Live Webinar Group Internet-Based Credit is an interactive, real-time online seminar where professionals can earn Continuing Education credits by participating in live sessions led by experts in various fields. These sessions meet the standards set by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies.

How do I earn credits through live webinars?

To earn credits, you must attend the entire live webinar, actively participate in any polls or questions, and complete any required evaluations or assessments. Credits are awarded based on your attendance and participation in the live session.

Are the live webinars approved by NASBA and other regulatory bodies?

Yes, all our live webinars are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies, ensuring they meet the high standards for quality, interactivity, and educational content set by these organizations.

What are the requirements to maintain compliance with live webinar courses?

To maintain compliance, you must adhere to the guidelines set by NASBA and other regulatory bodies, which include attending the full duration of the webinar, participating in interactive elements, and completing any post-webinar evaluations or assessments.

How can I access my webinar completion certificates?

After successfully attending a live webinar and fulfilling all participation requirements, you can access and download your completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies for compliance and reporting purposes.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Reviews and Ratings

out of 5

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AB

Anantharamakrishnan Balakrishnan, EA

5

Webinar on Leverages are very important to assess the companies solvency and debt servicing and effect on the EPS and Mix of Debt and Equity in the capital structure for a company. ROI and EBITDA is important to service the debt or repay the debt over the period of time.

LH

Lee Hall, CPA (US)

5

I am a seasoned CPA and I feel that it is important for all accountants at many levels. Do you understand and be able to analyze financial ratios

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