Financial Leverage in Financial Accounting Formulas

Financial Leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. And is denoted by FL.

Formulas to find Financial Leverage in Financial Accounting

fxFinancial LeverageGo

List of variables in Financial Accounting formulas

fx Total Debt Go

fx Total Shareholders' Equity Go

FAQ

What is the Financial Leverage?

Financial Leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.

Can the Financial Leverage be negative?

{YesorNo}, the Financial Leverage, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

Let Others Know

✖

Facebook

Twitter

Copied!