An Application of the Degree of Financial Leverage on Selected Industries
Abstract
The degree of financial leverage, which is a concept related
to the use of debt, varies among industries. In this respect,
the degree of financial leverage has been examined by using the
income statement items of various industries from 2009 to 2013.
The results highlight the differences in the degree of financial leverage. In addition to this, it has been revealed that the highest use
of financial leverage is in the textile, paper and paper products
industries. As a result, the effect of the change in the earnings before
interest and tax on earnings per share is higher compared to
other industries.
Keywords
Financial leverage,manufacturing sector,degree of financial leverage,profitability
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