What Is Financial Leverage, and Why Is It Important?
Let us evaluate the leverage of Infosys, one of India’s largest IT services companies, from an investment perspective. Fixed charges include interest, debt repayments, leases, and rent expenses. Typically, a D/E ratio greater than 2.0 indicates a risky scenario for an investor; however, this yardstick can vary by industry. Businesses that require large capital expenditures [...]