Debt-paying ability financial ability ratio, which measures corporate debt and general operating income to reflect the company's debt-paying ability. The attraction of warrants is that they can be small and wide. Investors only need to invest a small amount of money to get similar or even higher returns than investing in stocks. However, investors often confuse the leverage ratio of warrants with the actual leverage ratio when choosing warrants.

Financial leverage is the role of debt and preferred stock financing in improving the income of business owners. It is based on the comparative relationship between enterprise investment profit and debt interest rate. Although the calculation of leverage index is simple, its effectiveness depends on its wide application in the financial system. Due to the deepening trend of mixed operation of banks, the off-balance-sheet structure of financial institutions is becoming more and more complicated, and derivatives transactions are becoming more and more complicated, which makes it very difficult to accurately calculate the leverage ratio.

Financial leverage is also called financing leverage or financing leverage. It refers to the phenomenon that the change of earnings per share of common stock is greater than that of earnings before interest and tax due to the existence of fixed debt interest and preferred stock dividend. Financial leverage is the ratio of total assets to common shareholders' equity. The calculation method of common shareholders' equity is total liabilities minus total assets. Buying assets through debt financing will increase total assets and total liabilities, and will not affect the rights and interests of ordinary shareholders. Leading to an increase in financial leverage.

When you don't pay attention to stocks, you can get higher profits, and when you pay too much attention, you will lose more. Therefore, investors should not only pay attention to the potential benefits, but also pay attention to the potential risks, so as to achieve a balance between risks and benefits. In the financial derivatives market, leverage ratio refers to the ratio of the actual value represented by futures or options positions to the amount of cash paid to establish positions. The higher the leverage ratio, the greater the profit or loss caused by the change of unit market price, which means the higher the investment risk. When the trend is favorable, it will gain huge benefits; When the trend is unfavorable, you may lose all your money.