The degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt; they may also be unable to find new lenders in the future. Financial leverage is not always bad, however; it can increase the shareholders' return on investment and often there are tax advantages associated with borrowing. also called leverage.
Related information about financial leverage:
- Leverage (finance) - Wikipedia, the free encyclopedia
Degree of Financial Leverage (DFL)= EBIT / ( EBIT - Total Interest expense ) ... Financial leverage tries to estimate the percentage change in net income for a ...
- What is financial leverage? - InvestorWords.com
Definition of financial leverage: The degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of ...
- What is financial leverage? - BusinessDictionary.com
Definition of financial leverage: The use of borrowed money to increase production volume, and thus sales and earnings. It is measured as the ratio of total debt ...
- Degree Of Financial Leverage (DFL) Definition | Investopedia
A leverage ratio summarizing the affect a particular amount of financial leverage has on a company's earnings per share (EPS). Financial leverage involves ...
- CFA Level 1 Study Guide - Corporate Finance - Financial Leverage ...
Investopedia's Free CFA Level 1 Exam Online Study Guide. Learn how the degree of financial leverage can affect EPS. Provides a definition and formula for the ...
- What is financial leverage? | AccountingCoach.com Q&A
Financial leverage refers to the use of debt to acquire additional assets. Financial leverage is also known as trading on equity. Below are two examples to.
- Financial Leverage
Financial leverage can be aptly described as the extent to which a business or investor is using the borrowed money. Business companies with high leverage ...
- Financial Leverage Ratio
Financial Leverage Ratio formula, calculation and definition. Calculate Debt Equity, Leverage Ratio or Financial Leverage Ratio.