Importance Financial leverage is a key indicator of sustainable functioning of organizations. It has an impact on investors' effective strategic decisions. Professional judgment and competence of analysts play an important role in determining and assessing the effect of financial leverage, as IFRS do not imply strict standardization of the financial statements' figures formation. All of the above reinforces the relevance of unbiased assessment of efficient use of borrowings and the effect of financial leverage calculation. Objectives The aim is to justify proposals for improving the financial leverage calculation methodology as applied to current economic conditions. Methods The study employs a historical approach, general and special methods of analysis, synthesis and analogies. Results I considered problematic aspects of methodology for determining the effect of financial leverage, performed their critical analysis, improved algorithms to calculate this indicator taking into account the inflation component for unbiased assessment and prediction of the financial leverage effect. Conclusions and Relevance The considered issues will serve as a basis for further development of the methodology for assessing the efficiency of borrowed funds use, and as a guidance in the practical management of economic entities.
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