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Financial leverage
Formula
FL
financial leverage
OI
operating income
NI
net income
Formula description
In finance, leverage (sometimes referred to as gearing in the United Kingdom) is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.
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OI
NI
FL
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Formula code
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FL = OI/NI
FL = OI/NI
FL = OI/NI
FL = OI/NI
FL = OI/NI
\mbox{Financial Leverage}=\frac{\mbox{Operating Income}}{\mbox{Net Income}}
$FL = $OI/$NI
References
Wikipedia:Corporate finance.
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