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Imagine a company with Assets = 100, Equity = 60 and Liabilities = 40. If the company were to lease an additional asset worth 10 under an operating lease agreement, neither the asset itself nor a liability would be recognised and the leverage ratios which Schweser mention would stand at:
Debt/Assets = 40/100 = 0.4, and
Debt/Equity = 40/60 = 0.67
If the same asset (worth 10) were leased under a finance lease agreement, the balance sheet effect would be to increase assets and liabilities by 10 resulting in: Assets = 110, Equity = 60 (no change) and Debt = 50. The adjusted leverage ratios would be:
Debt/Assets = 50/110 = 0.45, and
Debt/Equity = 50/60 = 0.83
… so both have gone up.
Hope this helps