EBIT-EPS analysis shows the advantage/disadvantage of different levels of leverage as a function of profitability measured in terms of EBIT.

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EBIT-EPS analysis is a financial tool used for comparing different levels of leverage and their effects on profitability, as measured by EBIT. It helps determine the optimal capital structure (debt to equity ratio) for a company, by analyzing the impact of a change in leverage on earnings per share (EPS) and return on equity (ROE). Therefore, the statement is true.

EBIT-EPS Analysis Shows the Advantage/disadvantage of Different Levels of Leverage