TOL/ATNW (Leverage Ratio) represents total outside liabilities divided by adjusted tangible net worth. It measures leverage and dependence on external debt versus capital. Higher ratio indicates greater financial risk and lower cushion for lenders. In MSME underwriting, it is read along with financial statements, bank statements, GST data and existing obligations to judge cash-flow strength and repayment capacity. The trend is usually more important than one isolated number, because MSME financials can be affected by seasonality, accounting treatment and one-off events. For example, high leverage means a small fall in cash flow can quickly affect debt servicing and renewal comfort. It matters because financial interpretation can change the view on leverage, liquidity, profitability, debt-service ability and the borrower’s real operating strength. The common caution is to check calculation basis, period, exceptional items, related-party entries and consistency with GST, bank statement and audit data.