The term leverage generally, refers to a relationship between 2 interrelated variables. In financial analysis, it represents the influence of one financial variable over some other related financial variable. These financial variables may be costs, output, sales revenue, EBIT (Earnings Before Interest and Tax), EPS (Earnings Per Share), etc. Type of leverage : Commonly used leverages…

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A popular technique of analyzing the performance of a business concern is that of financial ratio analysis, it, as a tool of financial management is of crucial significance. Its importance lies in the fact that it presents facts on a comparative basis and enables drawing of inferences as regards a firm’s performance. It is relevant…

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