How might EBIT be influenced by financial leverage at high debt levels?

Answer Investors and managers monitor financial statements to track business performance. Earnings before interest and taxes--or EBIT--measures profitability. Analysts must delve deeper to determine the ... Read More »

Top Q&A For: How might EBIT be influenced by financial lever...

How does the interest rate affect financial leverage?

Interest rates have a big effect on how much a business or individual can borrow. People or companies that borrow money are said to be leveraged. Lower interest rates mean they can afford to borrow... Read More »

What is financial leverage and how is it provided by long-term debt?

The use of financial leverage is a choice made by corporate managers over how to finance their internal operations. Proper use of debt and leverage can result in higher profits, but mismanagement c... Read More »

How do i calculate ebit?

Determine the total sales revenues the business generated over the past 12 months. Subtract the costs incurred for creating and selling the business product, such as advertising, consulting fees an... Read More »

How do i calculate ebit equation?

EquationThe equation for the earnings before interest and taxes (EBIT) of a business is: total sales revenue minus operating costs.Calculate Total Sales RevenueTally the total amount of income gene... Read More »