Other things held constant,the more debt a firm uses,the lower its operating margin will be.

Name: Other things held constant,the more debt a firm uses,the lower its operating margin will be.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Operating margin is a measure of a company's operational efficiency and profitability from its core business activities, and it is not directly affected by the amount of debt a firm uses. Debt affects financial leverage and interest expenses, which impact net income and financial ratios, but not operating margin.

Other Things Held Constant,the More Debt a Firm Uses,the Lower