Written with graceful simplicity, The Big Wave won the Childrenâs Book Award of the Child Study Association of America when it was first released. This ebook features an illustrated biography of Pearl S. Buck including rare images from the authorâs estate. Read on Scribd mobile: iPhone, iPad and Android.
Well, the âadvantageâ of increased financial leverage is a potentially higher return on equity. The disadvantage, on the other hand, is that the business is now riskier as it is financed with more debt (when revenue falls for unexpected reasons, there's now a whole lot of interest that still has to be paid).
Financial Leverage Ratio Page 70. This ratio measures the effectiveness of management in using debt to increase the amount of assets the company employs to earn income for stockholders. The higher the number, the more assets are financed through debt; the lower the number, the more assets are financed through equity. Total Asset Turnover Ratio Page 126. This ratio measures the effectiveness of management in generating sales from the companies assets.