# Reading leverage

Informational only - not investment advice.

Book: [Reading Financial Data - Step by Step](/guide/)
Chapter: [Cash flow & returns](/guide/cash-flow-returns/)
As of: 2026-02-13

Liabilities / equity compares what a company owes with owners' equity.

## Concept

grepcent labels this ratio as liabilities / equity, not debt / equity, because it uses total liabilities.

## Worked Example: Compute JPM liabilities / equity

1. JPM liabilities were $4,062.5 billion in fiscal 2025.
2. JPM stockholders' equity was $362.4 billion.
3. Liabilities / equity = $4,062.5 billion / $362.4 billion = 11.21.
4. Banks naturally carry large liabilities because deposits and other funding sit on the balance sheet.
5. Read the ratio as a balance-sheet structure fact, then compare only with context.

## See it live

- [JPM company page](/company/JPM/)

## Sources

- [JPM SEC companyfacts](https://data.sec.gov/api/xbrl/companyfacts/CIK0000019617.json)
- [JPM latest 10-K source](https://www.sec.gov/Archives/edgar/data/19617/000162828026008131/jpm-20251231.htm)