iCFO Finsights: The 7 Most Leveraged Industries in the U.S. 

When a mortgage broker shows 13x leverage on their balance sheet, is that a red flag — or just Tuesday? 

The answer depends entirely on the industry. In some sectors, elevated debt is a structural feature of how businesses operate, scale, and generate returns. In others, the same ratio is a genuine warning sign. Knowing the difference is essential — whether you are advising a business owner, benchmarking a portfolio company, or evaluating a sector for investment. 

Using iCFO’s database of 1M+ U.S. private companies, we ranked seven industries by median Total Liabilities to Net Worth — and examined what that leverage actually means in each case. 

The 7 Most Leveraged Industries in the U.S. 

#1   Mortgage & Nonmortgage Loan Brokers (NAICS 522310) 

  • Median leverage: 13.5× 

Warehouse funding lines and short-term financing structures are standard operating tools here — not distress signals. For advisors, the right question is whether funding costs and loan quality are being managed well. For PE, this sector’s leverage profile makes traditional debt-to-equity deal screens largely irrelevant; underwriting quality and net interest margin are the real value drivers. 

#2   Offices of Real Estate Agents & Brokers (NAICS 531210) 

  • Median leverage: 5.8× 

Cyclical commission income and market expansion costs produce uneven capital structures in this sector. Firms that manage liquidity effectively tend to weather downturns best. In a PE context, the current ratio matters as much as the leverage multiple — cash burn during a slow market can erode equity quickly in leveraged broker networks. 

#3   Other Nonscheduled Air Transportation (NAICS 481219) 

  • Median leverage: 5.5× 

Fleet financing decisions — own vs. lease — directly shape both risk exposure and return potential. Two firms with the same revenue can look very different on the balance sheet depending on their asset strategy. For investors, the distinction between operating and financial leverage here is critical to modeling true downside risk. 

#4   Automobile Dealers (NAICS 441110) 

  • Median leverage: 4.6× 

Inventory floorplan financing is structural — it’s how the business model works. What matters is turnover velocity and interest rate sensitivity. When rates rise or demand softens, the same leverage that supports growth compresses margins quickly. A high-leverage dealership in a rising rate environment is a very different investment thesis than the same dealership in a falling rate one. 

#5   Sales Financing (NAICS 522292) 

  • Median leverage: 4.0× 

Specialized finance companies scale by deploying borrowed capital — leverage is inherent to the model. What separates strong performers from weak ones is underwriting discipline and funding strategy, neither of which appears in the leverage ratio itself. For PE due diligence, loss reserve adequacy and funding diversification are the metrics worth stress-testing. 

#6   Electronic Components & Equipment Wholesalers (NAICS 423690) 

  • Median leverage: ~3× 

Inventory and receivables financing are operational necessities in distribution. The best operators improve capital turnover over time, which reduces debt dependence as the business matures. A declining leverage ratio in this sector often signals operational improvement — a useful pattern to track in buy-and-build roll-up strategies. 

#7   Advertising Agencies (NAICS 541810) 

  • Median leverage: 2.6× 

Less asset-intensive than the others on this list, but agencies can carry meaningful leverage tied to acquisitions, deferred revenue timing, and campaign billing cycles. This leverage is often less visible in early diligence — and worth examining carefully whether you are advising an agency owner or evaluating one as a platform acquisition target. 

The takeaway 

The key question is never whether a business is leveraged — it is whether the leverage is appropriate for the industry and operating model. A 4.6x ratio at an auto dealership is completely normal. The same ratio at a professional services firm warrants a conversation. 

iCFO benchmarks Total Liabilities to Net Worth across 2,500+ industries, so advisors can show clients where they stand against their actual peers — and investors can pressure-test capital structure assumptions before they close a deal. 

Benchmark Leverage by Industry at iCFO.pro 

Source: FINTEL, LLC — analysis of 1M+ U.S. companies using firm-level financial data. 

This analysis is part of the iCFO Finsights series, an ongoing benchmark initiative for advisors and investors.