The effect of financial leverage on the profitability of economic services companies - Case study of the Sonelgaz company in Guelma for the period )2017-2019(

Abstract

The study aims theoretically, to determine the basics of financial leverage and the effects of leverage as well as the financial and the economic rentability, up to the degree of the funding and operational leverage, based on calculation of the margin on the variable cost.

Practically،this study measured the impact of financial leverage on the rentability of Sonelgaz company for the period (2017-2019) and it showed that there was an effect between financial rentability, economic rentability and financial leverage under company's dependence on external finance sources when Resorting to the borrowing.