financial leverage ratio

feautures of job costing

Financial Leverage Ratio – meaning and formula.

Financial leverage results from the presence of fixed financial charges in the firm’s income stream. These fixed charges do not vary with the earnings before interest and tax (EBIT) or operating profits. They have to be paid regardless of the amount of earnings before interest and taxes available to pay them. After paying them, the operating profits (EBIT) belong to … Read the rest

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Mwaikusa ltd revision question on ratio analysis

Mwaikusa Ltd a trading company commenced business in central Kigali in 2016, preparing its financial statements to 31 October.  The directors of Mwaikusa Ltd are trying to assess the financial performance and financial position of the company for the year ending 31 October 2017.  The

Following information has been extracted from the financial statements of … Read the rest