The document discusses different types of leverage. It defines leverage as effectiveness or power to use borrowed money to buy or pay for something that may generate future income. There are three main types of leverage: operating leverage which measures fixed costs compared to total costs, financial leverage which refers to using debt to buy more assets, and combined leverage which results in high profits due to fixed costs.

1. Leverages
By- Kanika Verma
To-Dr. Shikha mam

2. Leverage
 ‘Leverage’ means ‘effectiveness’or ‘power’.
 To leverage something means to use borrowed money to buy or pay something that may
generate income in the future.
 Degree of leverage.
 Measure of how much leverage the firm uses.
 Three types of leverages

3. Types of leverage
Operating
Leverage
Financial
Leverage
Combined
Leverage

4.  Operating leverage-is the measure of a company's fixed costs compared to
their total costs.
 Financial leverage-is the use of debt to buy more assets.
 Combined leverage-is a leverage which refers to high profits due to fixed costs.