The difference between Operating Leverage and Financial Leverage in tabular form as described below
| Basis of Difference | Operating Leverage | Financial Leverage |
| Objective | Operating leverage aims to optimise the impact of change in sales to the change in operating profits. | Financial leverage attempts to optimise the impact of change in operating profits on Earnings per Share. |
| Relationship | Operating leverage is concerned with inter-relationship between revenue and operating profit. | Financial leverage is concerned with inter relationship between operating profit and return on equity. |
| Measurement | Operating leverage studies the ability of a firm to leverage its fixed cost assets to optimise its operating profits. | Financial leverage studies the ability of the firm to use its fixed cost funds to increase the return on equity. |
| Balance Sheet Position | Operating leverage is concerned with the asset side of the balance sheet. | Financial leverage is concerned with the liability side. |
| Impact on Income | Operating leverage affects EBIT or profit before interest and tax. | Financial leverage has an impact on profit after interest and tax. |
| Risk | Operating leverage is concerned with the risk of not being able to meet fixed operating costs. | Financial leverage is concerned with the risk of not being able to meet fixed financial costs. |
| Decision | Operating leverage aids in the process of making investment decisions. | Financial leverage is helpful in making financing decisions. |
| Stage | Operating leverage is considered to be the first stage leverage | Financial leverage is second stage leverage |