Leverage ratios demonstrate how a firm uses debt to create wealth.  The lower the number the better implying increasing company equity or decreasing debt.

 

The highest the debt-to-equity ratio should be below 2.  A high debt-to-equity ratio is a red flag. It indicates possible difficulty in paying off debt.

 

Interest coverage ratio indicates how many times over the earnings can cover the interest on the debt position of the company.  A high number is very good.

 

The long-term debt-to-equity ratio is a measure of a company's financial leverage.  Over time this number should get smaller and smaller.  Would expect this number to be large for a manufacturing IPO.  Due to large expenditures to get factories up and running.  If ratio is greater than 1 then most of assets are funded through debt and not equity.