Financial analysts use several key indicators to assess a company's level of leverage, which can help them evaluate the company's financial stability and potential for growth. One such indicator is the debt-to-equity ratio, which compares a company's total debt to its equity. A high debt-to-equity ratio can indicate that a company has a significant amount of debt relative to its equity, which can increase its financial risk.

Another important indicator is the interest coverage ratio, which measures a company's ability to pay interest on its debt. A low interest coverage ratio may suggest that a company is struggling to service its debt, which can increase its risk of default.

The debt-to-EBITDA ratio is also commonly used to assess leverage, as it measures a company's debt relative to its earnings before interest, taxes, depreciation, and amortization. A high debt-to-EBITDA ratio can indicate that a company is heavily reliant on debt to generate earnings, which can increase its financial risk.

Overall, financial analysts use a combination of these and other indicators to assess a company's level of leverage, and interpret them in the context of the company's industry and economic conditions.

Financial analysts use several key indicators to assess a company's level of leverage, which reveals how much debt a company is using to finance its operations. Some important leverage indicators include:

1. Debt-to-Equity Ratio: This compares a company's total debt to its shareholders' equity. A high ratio indicates a company relies heavily on debt, which increases financial risk. Lower ratios suggest a more conservative approach.

2. Debt-to-Assets Ratio: This measures the proportion of a company's assets financed by debt. A higher ratio implies more reliance on borrowing, which can strain cash flows during downturns.

3. Interest Coverage Ratio: It reflects a company’s ability to cover interest payments with its operating income. A low ratio indicates potential difficulty in meeting interest obligations, signaling higher default risk.

4. Leverage Ratio (Total Debt/EBITDA): This compares total debt to earnings before interest, taxes, depreciation, and amortization (EBITDA). It shows how much debt a company can pay off using its core earnings. Higher values raise concerns about excessive leverage.

Analysts interpret these ratios collectively. A high leverage profile may indicate increased financial risk but could also suggest strategic growth through debt. Conversely, lower leverage usually points to financial stability but might imply missed growth opportunities.