How does the use of financial leverage affect current stockholders control position? Explain the following statement: Analysts look at both balance sheet and income statement ratios when appraising a firms financial condition. Name three ratios that are used to measure the extent to which a firm uses financial leverage, and write out their equations. A company has EBITDA of $600 million, interest payments of $60 million, lease payments of $40 million, and required principal payments (due this year) of $30 million. What is its EBITDA coverage ratio?