Degree of Financial Leverage Calculator
Calculate the degree of financial leverage (DFL) to measure how sensitive EPS is to changes in EBIT.
How to Use the Degree of Financial Leverage Calculator
- Enter EBIT.
- Enter interest expense.
- Click Calculate.
- Review DFL and earnings before tax.
حالات الاستخدام
- •Capital structure analysis
- •Financial risk measurement
- •EPS sensitivity analysis
الصيغة
DFL = EBIT / (EBIT - Interest Expense)
الأسئلة الشائعة
What does DFL measure?
DFL shows how a 1% change in EBIT translates into a percentage change in earnings per share.
Is high DFL desirable?
High DFL magnifies returns in good times but also magnifies losses, increasing financial risk.
Is this calculator free?
Yes, all calculators are completely free.