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Explaining the Impact of Financial Leverage on Firm Performance in the Healthcare Sector in Sri Lanka by Fixed Cost Coverage Ratio

Chamil W. Senarathne

Chamil W. Senarathne

PhD, lecturer/programme leader, Finance, Colombo Institute of Research and Psychology; lecturer, School of Business, Faculty of Business, Colombo Institute of Research and PsychologyColombo 04, Sri Lanka
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Senarathne, Chamil W.
 and 
Tissa Ravinda Perera

Tissa Ravinda Perera

senior lecturer, Entrepreneurship, University of Colombo, senior lecturer, Department of Management and Organization Studies, Faculty of Management and Finance, University of ColomboColombo 03, Sri Lanka
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Perera, Tissa Ravinda
  
Mar 17, 2022
Explaining the Impact of Financial Leverage on Firm Performance in the Healthcare Sector in Sri Lanka by Fixed Cost Coverage Ratio's Cover Image
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Published Online: Mar 17, 2022
Page range: 77 - 91
Received: Jun 05, 2021
Accepted: Dec 10, 2021
DOI: https://doi.org/10.1515/mosr-2021-0014
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© 2021 Chamil W. Senarathne et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper finds that there is a significant negative relationship between financial leverage and firm performance in the healthcare industry in Sri Lanka. Furthermore, the fixed cost coverage by the utilization of fixed and operational assets is positively and significantly related to firm performance.

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