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Equity Multiplier
A financial leverage ratio that measures the portion of a company's assets that are financed by stockholder's equity.
Degree Of Total Leverage
A measure that quantifies the sensitivity of a company's earnings before interest and taxes to a change in its sales.
Financial Leverage
The use of borrowed capital or debt to increase the potential return of an investment.
Operating Leverage
Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the extent to which a company can increase its profits by increasing sales.
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