Leverage Index Calculator

Enter the return on equity (% or $) and the return on assets (% or $) into the Calculator. The calculator will evaluate the Leverage Index. 

• Return on Equity Calculator
• Return on Assets Calculator (ROA)
• Leverage Ratio Calculator

Leverage Index Formula

LI = ROE / ROA * 100

Variables:

• LI is the Leverage Index (%)
• ROE is the return on equity (% or $)
• ROA is the return on assets (% or $)

To calculate Leverage Index, divide the return on equity by the return on assets, then multiply by 100.

How to Calculate Leverage Index?

The following steps outline how to calculate the Leverage Index.

1. First, determine the return on equity (% or $). 
2. Next, determine the return on assets (% or $). 
3. Next, gather the formula from above = LI = ROE / ROA * 100.
4. Finally, calculate the Leverage Index.
5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

return on equity (% or $) = 300

return on assets (% or $) = 400