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Total leverage effect

Total leverage effect

Description

Total leverage effect (TLE) is calculated by multiplying two other ratios. One of them is OLE (operating leverage effect) and the other is FLE (financial leverage effect). This ratio helps to evaluate an addition risk of business.

Norms and limitations

There are no general norms for this ratio.

It is recommended to compare this ratio with the ratios of companies working within the same industry.

Read more... View all financial ratios calculators