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  A financial leverage ratio refers to the proportion of a firm's business operations that exceed its available debt. A company's business operations are defined as the daily activities that create goods or services for profit. This ratio is an important indicator of how much a firm is borrowing to fund its business operations. However, a high leverage ratio is not always a good thing. A company can be too heavily geared, which is a risky situation for investors. The financial leverage ratio measures how much debt a company owes compared to its equity. The ratio is calculated by dividing the company's debt by its equity percentage. For example, if Company A has 25 percent equity, then its financial leverage ratio would be 25%. In contrast, if the company owes 20% of its assets, it would have an 80% debt/equity ratio. This is a high leverage ratio because a company's assets are worth less than the debt, and the higher the financial leverage ratio, the higher the ris

  A finance degree can lead to a variety of career options . You can work in one of over 100 disciplines, such as investment banking, insurance, or personal financial planning. An associate's degree teaches the basics of finance, including macroeconomics, microeconomics, and principles of accounting . Most colleges and universities offer associate's degree programs in business administration. This degree program typically consists of introductory courses in financial management, as well as macroeconomics and microeconomics. A finance degree can prepare you for a wide variety of careers. These degrees will prepare you for a wide variety of positions in the business and financial world. Graduates will be prepared to work in a variety of industries, including corporate finance, asset management, and brokerage firms. Those with less math background may choose a more technical or non-traditional career. No matter what field you choose, your finance skills will be a valuable asset.