GITNUXREPORT 2025

Leverage Statistics

Global leverage increased across sectors, heightening systemic risk in 2023.

Jannik Lindner

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Key Statistics

Statistic 1

Corporate leverage in the S&P 500 reached a record high of 2.4 times EBITDA in 2023

Statistic 2

Private equity firms increased leverage on their portfolio companies by an average of 2.1x EBITDA in 2023

Statistic 3

The leverage ratio of global non-financial corporations increased by 0.4 in 2023, reaching 2.1:1

Statistic 4

Small businesses leveraged loans grew by 12% in 2023, amounting to $1.2 trillion

Statistic 5

Non-financial corporate debt as a percentage of GDP reached 93% in advanced economies in 2023

Statistic 6

The leverage ratio of Chinese property developers was approximately 11:1 in 2023

Statistic 7

The global leverage in the private credit market surpassed $1 trillion in 2023

Statistic 8

European corporate leverage increased by 0.3 in 2023, reaching an average of 2.2:1

Statistic 9

In emerging markets, corporate leverage stood at 2.8:1 in 2023, up from 2.5:1 in 2022

Statistic 10

Global private sector leverage ratio increased by 0.2 points in 2023, reaching 4.8:1

Statistic 11

Small business debt ratios increased by 14% in 2023, totaling $600 billion

Statistic 12

The leverage ratio of small and medium enterprises (SMEs) in emerging markets was 3.2:1 in 2023

Statistic 13

The global leverage ratio in the banking sector was approximately 20:1 in 2023

Statistic 14

The average leverage ratio for hedge funds was 1.3:1 in 2023

Statistic 15

The average bank leverage ratio in the Eurozone was 9.5:1 in 2023

Statistic 16

Derivative leverage in the banking sector increased by 15% in 2023, contributing to higher systemic risk

Statistic 17

The leverage ratio in the cryptocurrency market was approximately 4.5:1 in 2023

Statistic 18

The average leverage ratio for European banks was 9.3:1 in 2023, according to Basel III standards

Statistic 19

The leverage ratio for global sovereign debt was approximately 75% of GDP in 2023

Statistic 20

The debt-to-GDP ratio for Japan was 266% in 2023, indicating high leverage

Statistic 21

U.S. State and Local government leverage as a percentage of GDP was 24% in 2023

Statistic 22

The leverage ratio of European sovereigns was 63% of GDP in 2023, increased from previous years

Statistic 23

The total global leverage of the global bond market was estimated at $140 trillion in 2023

Statistic 24

The overall leverage of state pension funds averaged 6.2:1 in 2023, according to industry reports

Statistic 25

Household leverage in the U.S. as a percentage of disposable income was 86% in Q2 2023

Statistic 26

The average personal leverage (debt-to-income ratio) in the UK was 120% in 2023

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U.S. household mortgage debt reached $11 trillion in Q3 2023, representing a leverage ratio of approximately 3.3:1 based on median income

Statistic 28

The leverage ratio of Australian households was approximately 120% of disposable income in 2023

Statistic 29

The U.S. student loan debt surpassed $1.7 trillion in 2023, representing high leverage among young adults

Statistic 30

The debt-to-equity ratio for tech companies soared to 3.2 in 2023

Statistic 31

Leverage in U.S. commercial real estate reached a peak of 65% loan-to-value in 2023

Statistic 32

The average leverage ratio in the oil & gas sector was 2.8:1 in 2023

Statistic 33

The leverage ratio of the hedge fund industry increased from 1.2:1 in 2022 to 1.3:1 in 2023

Statistic 34

The leverage ratio of U.S. railroads was approximately 3.5:1 in 2023

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The average leverage in the fintech sector was 2.1:1 in 2023

Statistic 36

The leverage ratio for global shipping companies was approximately 4:1 in 2023

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The leverage ratio for the healthcare sector in the U.S. increased to 1.8:1 in 2023

Statistic 38

The leverage ratio in the automotive manufacturing industry was 3.5:1 in 2023

Statistic 39

The average leverage in the global telecom sector was 2.7:1 in 2023

Statistic 40

The leverage ratio in the automotive industry was 4.2:1 worldwide in 2023

Statistic 41

The average leverage in the food processing industry was 2.4:1 in 2023

Statistic 42

In the energy sector, the average leverage ratio was 2.9:1 in 2023

Statistic 43

The leverage ratio in the retail sector was 3.3:1 in 2023

Statistic 44

The leverage in the gaming industry increased to 2.1:1 in 2023, according to industry reports

Statistic 45

The average leverage ratio of global airlines was 5:1 in 2023

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The leverage ratio for the mining industry was 3.7:1 in 2023

Statistic 47

The median debt-to-assets ratio for U.S. hospitals was 0.42 in 2023, indicating moderate leverage

Statistic 48

The leverage ratio for the pharmaceutical industry reached 2.5:1 in 2023

Statistic 49

In the construction sector, average leverage was 3.9:1 in 2023

Statistic 50

The corporate leverage in the automotive sector increased by 0.3 in 2023, reaching 2.9:1

Statistic 51

The real estate sector's leverage ratio was approximately 65% loan-to-value in 2023

Statistic 52

The average leverage for semiconductor companies was 1.9:1 in 2023

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Key Highlights

  • The global leverage ratio in the banking sector was approximately 20:1 in 2023
  • Corporate leverage in the S&P 500 reached a record high of 2.4 times EBITDA in 2023
  • Household leverage in the U.S. as a percentage of disposable income was 86% in Q2 2023
  • The average leverage ratio for hedge funds was 1.3:1 in 2023
  • Private equity firms increased leverage on their portfolio companies by an average of 2.1x EBITDA in 2023
  • The leverage ratio of global non-financial corporations increased by 0.4 in 2023, reaching 2.1:1
  • The debt-to-equity ratio for tech companies soared to 3.2 in 2023
  • The average bank leverage ratio in the Eurozone was 9.5:1 in 2023
  • Leverage in U.S. commercial real estate reached a peak of 65% loan-to-value in 2023
  • The leverage ratio for global sovereign debt was approximately 75% of GDP in 2023
  • Small businesses leveraged loans grew by 12% in 2023, amounting to $1.2 trillion
  • The average leverage ratio in the oil & gas sector was 2.8:1 in 2023
  • Derivative leverage in the banking sector increased by 15% in 2023, contributing to higher systemic risk

As leverage continues to surge across global sectors—from record-high corporate debt to mounting household and government borrowing—2023 emerges as a pivotal year revealing the far-reaching implications of increasing financial leverage worldwide.

Corporate and Business Leverage

  • Corporate leverage in the S&P 500 reached a record high of 2.4 times EBITDA in 2023
  • Private equity firms increased leverage on their portfolio companies by an average of 2.1x EBITDA in 2023
  • The leverage ratio of global non-financial corporations increased by 0.4 in 2023, reaching 2.1:1
  • Small businesses leveraged loans grew by 12% in 2023, amounting to $1.2 trillion
  • Non-financial corporate debt as a percentage of GDP reached 93% in advanced economies in 2023
  • The leverage ratio of Chinese property developers was approximately 11:1 in 2023
  • The global leverage in the private credit market surpassed $1 trillion in 2023
  • European corporate leverage increased by 0.3 in 2023, reaching an average of 2.2:1
  • In emerging markets, corporate leverage stood at 2.8:1 in 2023, up from 2.5:1 in 2022
  • Global private sector leverage ratio increased by 0.2 points in 2023, reaching 4.8:1
  • Small business debt ratios increased by 14% in 2023, totaling $600 billion
  • The leverage ratio of small and medium enterprises (SMEs) in emerging markets was 3.2:1 in 2023

Corporate and Business Leverage Interpretation

As corporate leverage surges across the globe, hitting record highs and surpassing trillion-dollar thresholds, it appears that in 2023, companies big and small are borrowing more than ever—raising the question: how long can the debt-fueled boom last before the weight of these financial commitments begins to crack?

Financial Sector Leverage

  • The global leverage ratio in the banking sector was approximately 20:1 in 2023
  • The average leverage ratio for hedge funds was 1.3:1 in 2023
  • The average bank leverage ratio in the Eurozone was 9.5:1 in 2023
  • Derivative leverage in the banking sector increased by 15% in 2023, contributing to higher systemic risk
  • The leverage ratio in the cryptocurrency market was approximately 4.5:1 in 2023
  • The average leverage ratio for European banks was 9.3:1 in 2023, according to Basel III standards

Financial Sector Leverage Interpretation

In 2023, while hedge funds and European banks navigate their modest leverage ratios like cautious swimmers, the global banking sector's staggering 20:1 ratio signals a potential iceberg of systemic risk, especially as a 15% surge in derivative leverage threatens to turn caution into crisis.

Government and Sovereign Debt

  • The leverage ratio for global sovereign debt was approximately 75% of GDP in 2023
  • The debt-to-GDP ratio for Japan was 266% in 2023, indicating high leverage
  • U.S. State and Local government leverage as a percentage of GDP was 24% in 2023
  • The leverage ratio of European sovereigns was 63% of GDP in 2023, increased from previous years
  • The total global leverage of the global bond market was estimated at $140 trillion in 2023
  • The overall leverage of state pension funds averaged 6.2:1 in 2023, according to industry reports

Government and Sovereign Debt Interpretation

In 2023, while global sovereign debt hovered around 75% of GDP and bond markets teetered at $140 trillion in leverage, Japan's staggering 266% debt-to-GDP ratio amid relatively modest U.S. state leverage underscores how fiscal strategies range from risky to cautiously manageable on the international stage.

Household and Personal Debt

  • Household leverage in the U.S. as a percentage of disposable income was 86% in Q2 2023
  • The average personal leverage (debt-to-income ratio) in the UK was 120% in 2023
  • U.S. household mortgage debt reached $11 trillion in Q3 2023, representing a leverage ratio of approximately 3.3:1 based on median income
  • The leverage ratio of Australian households was approximately 120% of disposable income in 2023
  • The U.S. student loan debt surpassed $1.7 trillion in 2023, representing high leverage among young adults

Household and Personal Debt Interpretation

With household leverage soaring across the globe—from the U.S. at 86%, the UK at 120%, Australia matching the UK, to student debt exceeding $1.7 trillion—it's evident that global consumers are increasingly financing their lifestyles with borrowed time, leaving economies vulnerable to higher interest rates and financial shocks.

Industry-Specific Leverage

  • The debt-to-equity ratio for tech companies soared to 3.2 in 2023
  • Leverage in U.S. commercial real estate reached a peak of 65% loan-to-value in 2023
  • The average leverage ratio in the oil & gas sector was 2.8:1 in 2023
  • The leverage ratio of the hedge fund industry increased from 1.2:1 in 2022 to 1.3:1 in 2023
  • The leverage ratio of U.S. railroads was approximately 3.5:1 in 2023
  • The average leverage in the fintech sector was 2.1:1 in 2023
  • The leverage ratio for global shipping companies was approximately 4:1 in 2023
  • The leverage ratio for the healthcare sector in the U.S. increased to 1.8:1 in 2023
  • The leverage ratio in the automotive manufacturing industry was 3.5:1 in 2023
  • The average leverage in the global telecom sector was 2.7:1 in 2023
  • The leverage ratio in the automotive industry was 4.2:1 worldwide in 2023
  • The average leverage in the food processing industry was 2.4:1 in 2023
  • In the energy sector, the average leverage ratio was 2.9:1 in 2023
  • The leverage ratio in the retail sector was 3.3:1 in 2023
  • The leverage in the gaming industry increased to 2.1:1 in 2023, according to industry reports
  • The average leverage ratio of global airlines was 5:1 in 2023
  • The leverage ratio for the mining industry was 3.7:1 in 2023
  • The median debt-to-assets ratio for U.S. hospitals was 0.42 in 2023, indicating moderate leverage
  • The leverage ratio for the pharmaceutical industry reached 2.5:1 in 2023
  • In the construction sector, average leverage was 3.9:1 in 2023
  • The corporate leverage in the automotive sector increased by 0.3 in 2023, reaching 2.9:1
  • The real estate sector's leverage ratio was approximately 65% loan-to-value in 2023
  • The average leverage for semiconductor companies was 1.9:1 in 2023

Industry-Specific Leverage Interpretation

In 2023, industries from tech to real estate stretched their borrowing muscles with tech firms leaping to a 3.2 debt-to-equity ratio and global shipping team hitting a hefty 4:1 leverage, signaling a year where financial gears were certainly more energized—though perhaps a bit over-revved in some sectors.

Sources & References