The closest thing I’ve seen to the latter is EBT/EBIT which is the interest burden portion of the DuPont ROE analysis where financial leverage (assets/equity) is one of the other 4 factors.
yes noticed that as well. The FSA section defines financial leverage as (Assets/Equity) when discussing ROE. However the CorpFinance section defines degree of financial leverage as (EBIT/EBT). I doubt there’s an inconsistency but I don’t see the connection between the two.
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