Also means
debt-to-equity ratio
Usage Note
Verschuldungsgrad (also called Gearing) compares a firm's total debt to its equity. A high Verschuldungsgrad amplifies returns but also increases financial risk; rating agencies watch it closely, and Basel III sets a minimum Verschuldungsgrad (Leverage Ratio) for banks.
Examples
"Der hohe Verschuldungsgrad des Konzerns beunruhigt die Gläubigerbanken."
Natural Translation
The group's high leverage ratio worries its creditor banks.
Literal Translation
The high leverage-ratio of-the group worries the creditor-banks.
Related Words
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