Find the financial leverage factor, how to calculate the financial leverage factor

EBIT = 2500 * 16% = 4 million yuan.

Plan A Interest = 1200*30%*

Financial leverage coefficient = EBIT (EBIT-I) = 400 (Plan B Interest = 1200 * 40% *.)

Financial Leverage Factor = 400 (

Plan C Interest = 1200*50%*

Financial Leverage Factor = 400 (

Leverage** is the purchase of borrowed funds**, especially the purchase of credit on margin. In investment, the so-called leverage refers to the use of a part of the fixed-interest rate funds, such as corporate bonds, preferred shares, etc., in the capital structure to increase the return on investment of common stocks.

The degree of financial leverage (DFL) refers to the multiple of the change rate of after-tax profit per share of common stock to the rate of change of EBIT, also known as the degree of financial leverage, which is usually used to reflect the size and degree of financial leverage, as well as to evaluate the size and size of the financial risk of the enterprise. The formula for calculating the financial leverage factor is as follows: financial leverage coefficient = change in earnings per common share and change in earnings before interest and taxes; dfl=(△eps/eps)/(△ebit/ebit)；where:

DFL is the financial leverage factor; EPS is the change in earnings per share of common stock; EPS is earnings per common share before the change; EBIT is the change in earnings before interest and taxes; EBIT is EBIT before the change.

The main indicator of financial leverage measurement is the financial leverage factor, which means:

The rate of change in earnings per share of common stock is equivalent to the rate of change in EBIT.

It is calculated as follows:

Financial Leverage Factor =

Earnings per share of common stock.

Rate of change Rate of change in EBIT.

EBIT for the base period (EBIT for the base period - base period.

interest) for concomitant bank borrowings

Financial lease, and issuance.

For preferred stock companies, the calculation can be based on the following formula.

Financial Leverage Factor =

Leverage coefficient of financial acceptance of Yuying Sakura = [[EBIT]] EBIT - interest - financial lease rent - (

Preferred stock dividends 1 - income tax rate)].

Leverage Factor Financial leverage.

And. Operating leverage is expressed in a similar way, and the size of financial leverage is usually used.

Financial leverage factor indicated.

The greater the financial leverage factor, the more indicated.

The greater the financial leverage, the greater the financial risk; The smaller the financial leverage factor, the smaller the financial leverage and the smaller the financial risk.

The formula for calculating the financial leverage factor is:

where: dfl——

Financial Leverage Factor =

EPS – change in earnings per share of common stock;

EPS – before the change.

earnings per common share;

EBIT - pre-interest and pre-tax surplus change and balance allowance;

EBIT – earnings before interest and taxes before change.

The above formula can also be deduced as:

where: i – debt. Interest.

Financial Leverage Factor: Change in Earnings per Common Share Change in EBIT.

The calculation is as follows: the financial leverage coefficient refers to the multiple of the change rate of after-tax profit per share of common stock to the rate of change of EBIT, also known as the degree of financial leverage, which is usually used to reflect the size and degree of financial leverage, as well as to evaluate the size of the financial risk of the enterprise. The formula for calculating the financial leverage factor is:

Financial Leverage Factor: Change in Earnings per Common Share Change in EBIT.

The operating leverage factor (DOL), also known as the operating leverage factor or operating leverage, is the ratio of the rate of change in earnings before interest and taxes (EBIT) to the rate of change in production and sales. The formula is dol = EBIT rate of change and production and sales volume change = ( ebit ebit) (q q), ebit is the change in EBIT and q is the change in production and sales.

The total leverage coefficient refers to the product of the company's financial leverage coefficient and the operating leverage coefficient, which directly examines the impact of changes in operating income on earnings per share, and is a measure of the company's profitability per share.

Total leverage factor DTL = DFL * DOL = EBIT+F) EBIT- I - D (1-R)]. Among them: EBIT is earnings before interest and taxes.

F is the total fixed cost, I is the interest, D is the preferred stock dividend, and R is the income tax rate.

The financial leverage factor refers to the multiple of the change rate of after-tax profit per share of common stock to the rate of change of EBIT, also known as the degree of financial leverage, which is usually used to reflect the size and degree of financial leverage.

The formula for calculating the financial leverage coefficient is DFL=EBIT (EBIT-I), where: DFL is the financial leverage factor; EBIT is EBIT before the change. I shouted for the interest stop.

The degree of financial leverage (DFL) refers to the multiple of the change rate of after-tax profit per common share to the rate of change of EBIT, also known as the degree of financial leverage, which is usually used to reflect the size and degree of financial leverage, as well as the evaluation of the financial risk of the enterprise.

The formula for calculating the financial leverage factor is: financial leverage coefficient = change rate of earnings per share of common stock and change rate of EBIT.

where: DFL is the financial leverage factor; EPS is the change in earnings per share of common stock; EPS is earnings per common share before the change; EBIT is the change in earnings before interest and taxes; EBIT is EBIT before the change.

The formula for calculating the financial leverage factor is as follows:

Financial Leverage and Financial Risk.

The financial risk is the risk of insolvency arising from the use of debt financing by the company, and this risk is ultimately borne by the common shareholders. - The fluctuation of shareholders' returns, that is, the magnitude of financial risks. The larger the financial lever bending coefficient, the greater the financial risk.

The impact of changes in relevant factors on the financial leverage factor.

All other factors being equal:

1) The greater the interest (or preferred stock dividend), the greater the financial leverage factor;

2) The larger the EBIT, the smaller the financial leverage factor.

In the face of test centers that include more formulas like the above, there may be candidates who are worried that they will not enter formulas in the test. Not only must you master the knowledge well, but also be able to correctly express what you have learned in the exam, so as to get the corresponding scores.