it is a finance presentation.

1. Leverage Analysis The dictionary meaning of the term leverage refers to “ an increased means of accomplishing purpose.” In mechanics, leverage means the instrument that helps us in lifting heavy objects, which may not be otherwise possible. In financial management, the firm’s ability to use fixed cost funds to magnify the return of its owners . The use of the fixes charge sources of funds, such as debt and preference capital along with the owner’s capital in the capital structure is described as financial leverage.