EconPapers    
Economics at your fingertips  
 

THE COMBINED EVALUATION OF THE OPERATING RISK AND OF THE FINANCIAL RISK

Daniel Circiumaru (), Marian Siminica and Radu Criveanu
Additional contact information
Radu Criveanu: University of Craiova Faculty of Economics and Business Administration, Craiova

Revista Tinerilor Economisti (The Young Economists Journal), 2007, vol. 1, issue 9S, 143-147

Abstract: While performing its current activity, a company can face two types of risks: the operating risk and the financial risk. The combined effect of these risks obviously influences the shareholders’ earnings. In order to quantify this effect, we have used the degree of combined leverage, calculated in two ways, by taking into account the net result of the company and the economic value added. In order to better point out the size of the combined risk, we have made the graphical representation of the degree of combined leverage as a function of the operating result. Using this chart, we have made analyses regarding the dynamic of the combined risk for different intervals of evolutions of the operating result.

Keywords: operating risk; financial risk; degree of combined leverage; economic value added (search for similar items in EconPapers)
JEL-codes: G00 G20 (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://feaa.ucv.ro/RTE/009S-21.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2007:i:9s:p:143-147

Access Statistics for this article

Revista Tinerilor Economisti (The Young Economists Journal) is currently edited by Ionascu Costel

More articles in Revista Tinerilor Economisti (The Young Economists Journal) from University of Craiova, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Ionascu Costel ().

 
Page updated 2025-03-24
Handle: RePEc:aio:rteyej:v:1:y:2007:i:9s:p:143-147