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Leverage Ratios in Financial Analysis

Simko, Paul J.

Technical Note

Leverage Ratios in Financial Analysis

Simko, Paul J.

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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