This paper aims to measure the degree of operating leverage (DOL) and degree of financial leverage (DFL) by applying classical formula and compare the resulting coefficient with ex ante definition of leverage. The leverage is calculated for 10 year period ranging from 2010-11 to 2019-20 for 20 companies including 10 from Cement industry and 10 from Iron and Steel industry. The study resulted that there is much variation in leverage coefficient when compares to classical definition which states that coefficient of leverage can only be equal to or greater than one. The study concluded that there is a need of more adequate proxy measure for leverage instead of classical measure due to the importance of DOL and DFL in risk assessment.