财务管理ch08经营和财务杠杆.pptVIP

Chapter 08 Operating and Financial Leverage 经营杠杆和财务杠杆 Operating Leverage(经营杠杆) One potential “effect” caused by the presence of operating leverage is that a change in the volume of sales results in a “more than proportional” change in operating profit (or loss). Impact of Operating Leverage on Profits Firm F Firm V Firm 2F Sales $10 $11 $19.5 Operating Costs Fixed 7 2 14 Variable 2 7 3 Operating Profit FC/total costs FC/sales Impact of Operating Leverage on Profits Now, subject each firm to a 50% increase in sales for next year. Which firm do you think will be more “sensitive” to the change in sales (i.e., show the largest percentage change in operating profit, EBIT)? [ ] Firm F; [ ] Firm V; [ ] Firm 2F. Impact of Operating Leverage on Profits Firm F Firm V Firm 2F Sales Operating Costs Fixed Variable Operating Profit Percentage Change in EBIT* Impact of Operating Leverage on Profits Firm F is the most “sensitive” firm -- for it, a 50% increase in sales leads to a 400% increase in EBIT. Our example reveals that it is a mistake to assume that the firm with the largest absolute or relative amount of fixed costs automatically shows the most dramatic effects of operating leverage. Later, we will come up with an easy way to spot the firm that is most sensitive to the presence of operating leverage. Break-Even Analysis When studying operating leverage, “profits” refers to operating profits before taxes (i.e., EBIT) and excludes debt interest and dividend payments. Break-Even Chart QUANTITY PRODUCED AND SOLD Break-Even (Quantity) Point How to find the quantity break-even point: EBIT = P(Q) - V(Q) - FC EBIT = Q(P - V) - FC P = Price per unit V = Variable costs per unit FC = Fixed costs Q = Quantity (units) produced and sold Break-Even (Quantity) Point Breakeven occurs when EBIT = 0 Q (P - V) - FC = EBIT QBE (P - V) - FC