Generally refers to the ratio of equity capital to total assets in the balance sheet. Leverage ratio is an index to measure the debt risk of a company, which reflects the repayment ability of the company from the side. The reciprocal of leverage ratio is leverage ratio. Generally speaking, the leverage ratio of investment banks is relatively high. In 2007, the leverage ratio of Merrill Lynch was 28 times and that of Morgan Stanley was 33 times.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.