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Composite leverage equals financial leverage times operating leverage. Composite leverage is used to calculate the combined effect of operating and financial leverages. Leverage is the ratio of a company's debt to its equity.

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9y ago
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7y ago

Composite leverage is when a change in sales volume has an effect on earnings. This is before taxes and interest are taken out of the earnings.

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Q: What is composite leverage?
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Related questions

What is combined leverage?

Combined leverage is the combined result of operating leverage and financial leverage.


What mean by combine leverage?

combine leverage


What is the birth name of Henry Leverage?

Henry Leverage's birth name is Carl Henry Leverage.


Difference between operating leverage and financial leverage?

operating leverage is related to the investiment which is runing the business as finacial leverage related to the total equity minus laibalities .


What is a sentence with leverage?

I will need a crowbar for leverage to lift the corner of the heavy box. Leverage is needed to lift heavy objects. She thinks the truth will be the leverage she needs to win the lawsuit.


When was Leverage Factory created?

Leverage Factory was created in 2005.


What is the impact of financial leverage on stockholders?

Financial leverage makes no impact on stockholders as any stockholder who prefers the proposed capital structure (ie leverage) can simply create it using homemade leverage. Note: financial leverage refers to the extent to which a firm relies on debt. Homemade leverage is the use of personal borrowing to change the overall amount of financial leverage to which the individual is exposed


What rhymes with beverages?

leverage, average, bandage, carnage,Leverage!


When did the TV show Leverage begin?

Leverage premiered in December 2008.


What is the formula of leverage ratios?

One measure of leverage is Debt (or Liabilities) divided by Equity. The higher the figure, the greater is the leverage or reliance on debt to create shareholders equity.


Operating leverage results from what?

Operating leverage generally refers to revenues growing faster than expenses. This would be positive leverage. Companies with a largely fixed expense base have a lot of operating leverage (in both directions). If revenues are growing but expenses are flat, operating margins increase (positive operating leverage). If revenues decrease while expenses remain flat, operating margins decrease (negative operating leverage).


What is a list of prime numbers and composite numbers?

It would be impossible to list them all, since numbers go on forever, but here are some of them: 2 - Prime 3 - Prime 4 - Composite 5 - Prime 6 - Composite 7 - Prime 8 - Composite 9 - Composite 10 - Composite 11 - Prime 12 - Composite 13 - Prime 14 - Composite 15 - Composite 16 - Composite 17 - Prime 18 - Composite 19 - Prime 20 - Composite 21 - Composite 22 - Composite 23 - Prime 24 - Composite 25 - Composite 26 - Composite 27 - Composite 28 - Composite 29 - Prime 30 - Composite 31 - Prime 32 - Composite 33 - Composite 34 - Composite 35 - Composite 36 - Composite 37 - Prime 38 - Composite 39 - Composite 40 - Composite 41 - Prime 42 - Composite 43 - Prime 44 - Composite 45 - Composite 46 - Composite 47 - Prime 48 - Composite 49 - Composite 50 - Composite