Financial leverage is often measured using several key ratios: 1. Debt-to-Equity Ratio: This ratio compares the total debt of a company to its total equity. It indicates the proportion of debt being used to finance the company's assets. 2. Interest Coverage Ratio: This ratio measures a company's ability to meet its interest payments. It is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expenses. 3. Debt Ratio: This ratio compares a company's total debt to its total assets, providing insight into the level of leverage being used.