Consumer leverage ratio

[1] In the United States these are reported, respectively, by the Federal Reserve (as the household debt service ratio (DSR))[2] and the Bureau of Economic Analysis of the US Department of Commerce.

{\displaystyle {\mbox{Consumer leverage ratio}}={{\mbox{Total household debt}} \over {\mbox{Disposable personal income}}}}

The concept has been used to quantify the amount of debt an average consumer has, relative to their disposable income.

The consumer leverage ratio in the US was increasing in the years before the 2007–2008 financial crisis, peaking at 1.29x in 2007 and decreasing ever since.

Jarvis and MacMillan quantify this risk within specific businesses and industries in a ratio form as "Consumer Leverage Exposure" (CLE).