Top 3 Ratios under Activity Leverage | Financial Leverages

There are three ratios under this head which merit mention:- 1. Operating Leverage 2. Financial Leverage 3. Total Leverage. Ratio # 1. Operating Leverage: Operating leverage is concerned with the operation of any firm. The cost structure of any firm gives rise to operating leverage because of the existence of fixed nature of costs. This leverage relates to the sales [...]