Financial Knowledge: Financial Leverage
(1) financial leverage concept
Financial leverage refers to the existence of debt. cause The change of earnings per share is greater than the leverage effect before interest tax changes.
(two) measurement of financial leverage
The main index of financial leverage measurement is the financial leverage coefficient.
The coefficient of financial leverage refers to the rate of change of the profit per share of a common stock, which is equal to the multiple of the pre tax profit change rate.
The formula is:
Financial leverage =
ordinary
Profit per share change rate / pre tax profit rate of change
= base interest pre tax profit / (base interest pre tax profit base interest)
For enterprises with bank loans, financing leases and issuing preferred shares, the financial leverage coefficient can be calculated according to the following formula:
Financial leverage ratio = pre tax profit / [pre tax profit - interest - finance lease reserve fund - preferred stock dividend / (1- income tax rate)]
(three) relationship between financial leverage and financial risk
Financial risk refers to the risk that an enterprise increases the chance of a large change in the opportunity of bankruptcy or common stock per share in order to obtain financial leverage. Financial leverage will increase financial risk, the greater the proportion of corporate debt, the stronger the financial leverage effect, the greater the financial risk. The relationship between financial leverage and financial risk can be tested by calculating and analyzing the earnings per share, standard deviation and standard deviation of common stock under different capital structure.
- Related reading
- market research | Prada China Store Price Reduction 2%-3% Luxury Discount Discount Or Normalization
- Enterprise information | British Fashion Brand LK Bennett Failed To Apply For Bankruptcy Or Was Bought By Chinese Buyers.
- News Republic | Behind The Turn Of The United States' Clothing Is The Return Of The King Or A Flash In The Pan.
- Instant news | Why Do Notre Dame De Paris Group Pay For Post Disaster Reconstruction?
- Industry stock market | A Shares Three Birds: Pacific Bird, Noble Bird, Good News Bird, How To Fly Out Of Different Destinies.
- Shoe Express | Anta 2019 Improved In The First Quarter, Becoming The 2019 Most Valuable 50 Apparel Brand.
- Fashion makeup | Women's Matching Skills In Middle-Aged Clothes Are Very Important.
- Foreign trade information | Chinese Textile Enterprises Invest In Vietnam To Investigate Low Tariffs And Low Tax Rates As The Biggest Advantage.
- market research | "Only Fast Does Not Break" Failure, Fast Fashion Brand Began To Plan How Slow Down?
- Shoe Express | Nike Talks With Liverpool On Equipment Sponsorship. The Contract Is Over $98 Million A Year.
- Financial Knowledge: Operating Leverage
- In 2010, The Garment Industry In Shenzhen Realized An Output Value Of About 150000000000 Yuan.
- Zhongshan: The EU'S Clothing Exports Increased By &Nbsp; Children'S Clothing Safety Inspection Strengthened.
- Yu Dan: Good Clothing Is A Tacit Understanding Between A Person And A Brand.
- 湖南省服装行业协会第三届代表大会在长沙召开
- Riccardotisci To Regain The Love Of Latin America
- 导入有机棉开发环保童装
- 无浆料技术推广路漫漫
- The Role Of Financial Leverage
- Domestic Clothing Brands Begin To Explore Overseas Online Shopping Market