How to Calculate Degree of Financial Leverage?
Degree of Financial Leverage calculator uses degree_of_financial_leverage = Earnings Before Interest and Taxes/(Earnings Before Interest and Taxes-Interest) to calculate the Degree of Financial Leverage (DFL), The degree of financial leverage (DFL) is a metric that measures the sensitivity of a company’s operating income due to changes in its capital structure. Degree of Financial Leverage (DFL) and is denoted by DFL symbol.
How to calculate Degree of Financial Leverage using this online calculator? To use this online calculator for Degree of Financial Leverage, enter Earnings Before Interest and Taxes (EBIT) and Interest (I) and hit the calculate button. Here is how the Degree of Financial Leverage calculation can be explained with given input values -> 1.000016 = 450000/(450000-7).