Relationship between operating leverage and ROI
Variables DFL ROI Pearson correlation 1 -0.161
DOL Sig 0.839 N 4 4 Pearson correlation -0.161 1
ROI Sig 0.839 N 4 4
The above table reveals that the correlation coefficient among Degree of operating leverage and Return on investment is -0.161 which is statistically not significant at level of 0.001 level of significance(p value= 0.839) . It is witnessed that operating leverage is negatively correlated with return on investment as Pearson correlation is -0.161. Further it can be depicted that operating leverage is not in good position.
Relationship between operating leverage and ROI
Variables DFL ROI Pearson correlation 1 -0.663 …show more content…
It’s observed that financial leverage and return on investment are negatively correlated as Pearson correlation is negative. It can be further observed that position of financial leverage is not good.
Financial Leverage and ROI Variables DCL ROI Pearson correlation 1 -0.984
DCL Sig 0.016 N 4 4 Pearson correlation -0.984 1
ROI Sig 0.016 N 4 4
The above table shows that there is statistically significance at 0.01 level of significance between combined leverage and ROI(p value = 0.016) less than 0.05. However there is highly negative relationship between combined leverage and ROI as Pearson Correlated is highly negative and very near to -1. It is observed that the firm is maintaining decent level of combined leverage and suggest to continue same in future.
Statistical Significance at 0.01 level of significance RELATION
OPERATING LEVRAGE NO Negative
FINANCIAL LEVERAGE No Negative
COMBINED LEVERAGE YES Negative
Variables DFL ROI Pearson correlation 1 -0.161
DOL Sig 0.839 N 4 4 Pearson correlation -0.161 1
ROI Sig 0.839 N 4 4
The above table reveals that the correlation coefficient among Degree of operating leverage and Return on investment is -0.161 which is statistically not significant at level of 0.001 level of significance(p value= 0.839) . It is witnessed that operating leverage is negatively correlated with return on investment as Pearson correlation is -0.161. Further it can be depicted that operating leverage is not in good position.
Relationship between operating leverage and ROI
Variables DFL ROI Pearson correlation 1 -0.663 …show more content…
It’s observed that financial leverage and return on investment are negatively correlated as Pearson correlation is negative. It can be further observed that position of financial leverage is not good.
Financial Leverage and ROI Variables DCL ROI Pearson correlation 1 -0.984
DCL Sig 0.016 N 4 4 Pearson correlation -0.984 1
ROI Sig 0.016 N 4 4
The above table shows that there is statistically significance at 0.01 level of significance between combined leverage and ROI(p value = 0.016) less than 0.05. However there is highly negative relationship between combined leverage and ROI as Pearson Correlated is highly negative and very near to -1. It is observed that the firm is maintaining decent level of combined leverage and suggest to continue same in future.
Statistical Significance at 0.01 level of significance RELATION
OPERATING LEVRAGE NO Negative
FINANCIAL LEVERAGE No Negative
COMBINED LEVERAGE YES Negative