Leverage Ratios in Financial Analysis
Simko, Paul J.
Technical Note
Leverage Ratios in Financial Analysis
C-2291 | Published December 1, 2014 | 5 pages Technical Note
Collection: Darden School of Business
Product Details
This note introduces multiple concepts of leverage from an accounting context, specifically as they relate to balance sheets and income statements. Both operating- and financial-leverage ratios and their relation to changes in widely accepted profitability measures are reviewed.
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