Negative Financial Leverage Definition
Negative Financial Leverage Definition:
Negative financial leverage is a situation in which the fixed return to a company’s creditors and preferred stockholders is greater than the return on total assets. In this situation, the return on common stockholders’ equity will be less than the return on total assets.
Relevant Terms:
Other Related Accounting Articles:
- Positive Financial Leverage Definition
- Positive and Negative Operating Leverage Definition
- Operating Leverage Definition
- Financial Leverage Definition
- Negative Equity
- Tangible Common Equity
- Calculation of Stockholder Equity
- What is a Financial Leverage?
- Financial Accounting
- Different Types of Dividends
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