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dimpy.handa November 1st, 2010 06:18 PM

difference between operating leverage and financial leverage
 
wat are the factors of difference between operating leverage and financial leverage. how can both the leverage can be measured?

Paramjeet_1988 November 1st, 2010 10:05 PM

Re: leverages
 
Operating leverage measures the difference in the income if the amount of output or sale is changed by one unit and financial leverage is the amount of change in returns if there is a change in the funds that had been borrowed to form the assets. Operating leverage can be measured by the change in earning before interest and tax while degree of OL can be measured by the change in earning per share divided by the percentage change in the earning before interest and tax.

vardhanvishnug November 3rd, 2010 11:13 PM

Re: leverages
 
1 Attachment(s)
Hope this wil make u understand the operating and financial leverage more clearly

gr8rishabh May 14th, 2011 07:12 AM

Re: difference between operating leverage and financial leverage
 
but our teacher has taught us some thing very different.

DOL : Contribution/EBIT

DFL : EBIT/EBT

is this also correct?

Business-education June 27th, 2015 03:28 PM

Re: difference between operating leverage and financial leverage
 
Difference can be easily identified by their definition.So, here is the definition of operating leverage and financial leverage.

Meaning and Definition of operating leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income. It is a measure of leverage, and of how risky, or volatile, a company's operating income is.

Meaning and Definition of financial leverage

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 illustrate the use of financial leverage, or simply leverage. Mary uses $400,000 of her cash to purchase 40 acres of land with a total cost of $400,000.

rosemarry2 April 21st, 2016 04:40 PM

Re: difference between operating leverage and financial leverage
 
1 Attachment(s)
Quote:

Originally Posted by dimpy.handa (Post 427367)
wat are the factors of difference between operating leverage and financial leverage. how can both the leverage can be measured?

Hello friend,

Here I am sharing Study on Financial and Operating Leverage, so please download and check it.


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