• <abbr id="ck0wi"><source id="ck0wi"></source></abbr>
    <li id="ck0wi"></li>
  • <li id="ck0wi"><dl id="ck0wi"></dl></li><button id="ck0wi"><input id="ck0wi"></input></button>
  • <abbr id="ck0wi"></abbr>
  • <li id="ck0wi"><dl id="ck0wi"></dl></li>
  • Home >

    The Role Of Financial Leverage

    2011/1/6 10:49:00 103

    Financial Leverage Accounting

    Reasonable use of financial leverage will give enterprises

    Equity

    Capital brings extra benefits, but at the same time, it brings financial risks to enterprises.


    (1) role


    The role of financial leverage is to raise corporate owners by raising debt and preferred stock.

    Profit

    The function is based on the contrast relationship between the investment profit of the enterprise and the interest rate of the debt.


    1. investment profit rate is greater than debt interest rate.

    At this point, the profits generated by enterprises, the profits generated by debt funds used by enterprises (i.e. pre tax profit), have some surplus except debt interest, which is owned by the owners of enterprises.


    2. investment profit margin is less than debt interest rate.

    The interests created by the debt funds that the enterprises are adapting to are insufficient to pay interest on debt, and some enterprises that are not paid will need to compensate for the profits created by the use of equity funds.

    This will reduce the rate of return on the use of equity funds.


    It can be seen that when liabilities are in a large proportion of all funds, they are

    payment

    When the interest is large, the owner will get more extra income. If the profit margin of the investment is less than the interest rate of the debt, the owner will bear more additional loss.

    Usually, the effect of interest cost on extra income and extra loss becomes the function of financial leverage.


    (two) consequences of financial leverage


    Different financial leverage will play different roles under different conditions, resulting in different consequences.


    1. the profit margin of investment is greater than that of debt.

    Financial leverage will play a positive role, and the result is that the owners will get more extra benefits.

    This additional profit from financial leverage is financial leverage.


    2. the profit margin of investment is less than that of debt.

    Financial leverage will have a negative effect, which will result in greater additional losses for the owners.

    These additional losses constitute financial risks and even bankruptcy.

    This uncertainty is the financial risk that enterprises take on liabilities.

    • Related reading

    What Is Financial Leverage?

    Accounting teller
    |
    2011/1/6 10:47:00
    68

    Financial Terms: Financial Profit

    Accounting teller
    |
    2011/1/6 10:44:00
    44

    Financial Process

    Accounting teller
    |
    2011/1/6 10:40:00
    49

    What Is Derivative Financial Asset?

    Accounting teller
    |
    2011/1/6 10:39:00
    71

    What Is Non Derivative Financial Asset?

    Accounting teller
    |
    2011/1/6 10:37:00
    66
    Read the next article

    No Slurry Technology To Promote The Long Road

    In 2010, the "no sizing technology" and "no sizing material" introduced by Wuxi Natural Textile Industrial Co., Ltd. were approved by the China Textile Industry Association and entered the stage of vigorous promotion.

    主站蜘蛛池模板: 91精品国产9l久久久久| 亚洲国产精品无码专区在线观看| 中国欧美日韩一区二区三区| 老张和老李互相换女| 青青青视频免费| 日韩在线一区二区三区免费视频| 国产成人精品1024在线| 久久综合狠狠综合久久综合88| 国产挤奶水主播在线播放| 日韩欧美国产亚洲| 在线免费视频a| 亚洲精品国产精品乱码视色 | 国产精品国产三级国产专不∫| 亚洲成在人线在线播放无码| 在线日本妇人成熟| 最近免费中文字幕大全高清10| 国产裸体舞一区二区三区| 亚洲欧美中文字幕在线网站| 1313午夜精品理伦片| 最近中文字幕视频高清| 国产在线观看91精品不卡| 久久亚洲av无码精品色午夜 | 欧美人与物videos另| 国产特级毛片aaaaaa| 久久夜色精品国产亚洲| 色噜噜狠狠狠综合曰曰曰| 岛国免费v片在线观看完整版| 伊人色综合视频一区二区三区| 97久久人人超碰国产精品| 欧美jizz40性欧美| 国产动作大片中文字幕| 一道本视频在线观看| 爽新片xxxxxxx| 国产精品一区二区久久乐下载| 久久精品国产一区二区三区不卡 | 国产免费女女脚奴视频网| 日本三级香港三级人妇m| 免费视频你懂的| 777xxxxx欧美| 日韩三级电影视频| 卡一卡二卡三免费专区2|