Alternative Definition of Financial Leverage
According to Gitmar, “financial leverage is the ability of a firm to use fixed financial changes to magnify the effects of change in EBIT and EPS”.
FL = EBIT / EPS
Where,
FL = Financial Leverage
EBIT = Earning Before Interest and Tax
EPS = Earning Per share.
According to Gitmar, “financial leverage is the ability of a firm to use fixed financial changes to magnify the effects of change in EBIT and EPS”.

[Post Image Courtesy of StockImages at FreeDigitalPhotos.net]
FL = EBIT / EPS
Where,
FL = Financial Leverage
EBIT = Earning Before Interest and Tax
EPS = Earning Per share.
Alternative Definition Of Financial Leverage
Reviewed by Blog Editor
on
Saturday, June 03, 2017
Rating:
No comments:
Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !