SlideShare a Scribd company logo
1 of 1
LEVERAGES
INCOME STATEMENT
PARTICULARS Rs.
Sales XX
Less: Variable Cost XX
CONTRIBUTION XX
Less : Fixed Cost excluding Interest XX
EBIT XX
Less : Interest XX
EBT XX
Less : Tax @ ___ % XX
EAT XX
FORMULAS :-
LEVERAGE FORMULA ANSWER
DOL
Degree of Operating
Leverage
CONTRIBUTION
EBIT
DFL
Degree of Financial
Leverage
EBIT
EBT
DCL
Degree of Combined
Leverage
CONTRIBUTION
EBT
OR
DOL × DFL
Prof. Savita Bodke
Email :- savitashri20@yahoo.in Page 1

More Related Content

What's hot

Small industries services institutes
Small industries services institutesSmall industries services institutes
Small industries services institutes
Simran Kaur
 

What's hot (20)

Process of strategic choice
Process of strategic choiceProcess of strategic choice
Process of strategic choice
 
Investment environment in india
Investment environment in indiaInvestment environment in india
Investment environment in india
 
Behavioural implimentations
Behavioural implimentationsBehavioural implimentations
Behavioural implimentations
 
Corporate strategy
Corporate strategyCorporate strategy
Corporate strategy
 
Models of strategy implementation by : Rajeh Altharah
Models of strategy implementation by : Rajeh AltharahModels of strategy implementation by : Rajeh Altharah
Models of strategy implementation by : Rajeh Altharah
 
FUNCTIONS OF EXIM BANK
FUNCTIONS OF EXIM BANKFUNCTIONS OF EXIM BANK
FUNCTIONS OF EXIM BANK
 
STRUCTURAL IMPLEMENTATION
STRUCTURAL IMPLEMENTATIONSTRUCTURAL IMPLEMENTATION
STRUCTURAL IMPLEMENTATION
 
Bee fdi and fii ppt
Bee fdi and fii pptBee fdi and fii ppt
Bee fdi and fii ppt
 
Ge matrix
Ge matrixGe matrix
Ge matrix
 
Foreign Exchange Management Act (FEMA)
Foreign Exchange Management Act (FEMA)Foreign Exchange Management Act (FEMA)
Foreign Exchange Management Act (FEMA)
 
International Business Introduction, Nature and Scope
International Business   Introduction, Nature and ScopeInternational Business   Introduction, Nature and Scope
International Business Introduction, Nature and Scope
 
Modes of entry to international business
Modes of entry to international businessModes of entry to international business
Modes of entry to international business
 
Factors That Shape a Company's Strategies-SM-MBA
Factors That Shape a Company's Strategies-SM-MBAFactors That Shape a Company's Strategies-SM-MBA
Factors That Shape a Company's Strategies-SM-MBA
 
Foreign direct investment
Foreign direct investmentForeign direct investment
Foreign direct investment
 
Stages of internationalization
Stages of internationalizationStages of internationalization
Stages of internationalization
 
Development International Staff and Multinational Team
Development International Staff  and Multinational TeamDevelopment International Staff  and Multinational Team
Development International Staff and Multinational Team
 
Small industries services institutes
Small industries services institutesSmall industries services institutes
Small industries services institutes
 
Organizational Design And Change
Organizational Design And  ChangeOrganizational Design And  Change
Organizational Design And Change
 
Functional implementation
Functional implementationFunctional implementation
Functional implementation
 
REPORT on IT industry
REPORT on IT industry REPORT on IT industry
REPORT on IT industry
 

Recently uploaded

The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
QucHHunhnh
 
Making and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdfMaking and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdf
Chris Hunter
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
negromaestrong
 

Recently uploaded (20)

Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural ResourcesEnergy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
 
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17  How to Extend Models Using Mixin ClassesMixin Classes in Odoo 17  How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Micro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfMicro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdf
 
Role Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptxRole Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptx
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
PROCESS RECORDING FORMAT.docx
PROCESS      RECORDING        FORMAT.docxPROCESS      RECORDING        FORMAT.docx
PROCESS RECORDING FORMAT.docx
 
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-IIFood Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptx
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SD
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
Making and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdfMaking and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdf
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
 

Leverages format

  • 1. LEVERAGES INCOME STATEMENT PARTICULARS Rs. Sales XX Less: Variable Cost XX CONTRIBUTION XX Less : Fixed Cost excluding Interest XX EBIT XX Less : Interest XX EBT XX Less : Tax @ ___ % XX EAT XX FORMULAS :- LEVERAGE FORMULA ANSWER DOL Degree of Operating Leverage CONTRIBUTION EBIT DFL Degree of Financial Leverage EBIT EBT DCL Degree of Combined Leverage CONTRIBUTION EBT OR DOL × DFL Prof. Savita Bodke Email :- savitashri20@yahoo.in Page 1