The formulas
- Leverage = (managers + staff) / partners
- Staff per manager = staff / managers
How it works
Leverage counts how many non-owner professionals each partner has behind them. Count full-time equivalents if part-time staff are a large share.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Should I count equity and non-equity partners together?
Pick one definition of partner and use it in every period.
Does high leverage mean higher profit?
It changes how partner hours are spread. Profit also depends on rates, realization and utilization.
Formulas on this page are the standard definitions.
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