Operating leverage

Fixed operating costs, so-called because they accentuate variations in profits. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Operating leverage — Sachin Jadhav explained the Definition of Operating Levarage as, The operating leverage is a measure of how revenue growth translates into growth in operating income. It is a measure of leverage, and of how risky (volatile) a company s operating… …   Wikipedia

  • Operating Leverage — A measurement of the degree to which a firm or project incurs a combination of fixed and variable costs. 1. A business that makes few sales, with each sale providing a very high gross margin, is said to be highly leveraged. A business that makes… …   Investment dictionary

  • operating leverage — Fixed operating costs , which are characterized as leverage because they accentuate variations in profits. Bloomberg Financial Dictionary …   Financial and business terms

  • operating leverage — Fin the ratio of a business’s fixed costs to its total costs. As the fixed costs have to be paid regardless of output, the higher the ratio, the higher the risk of losses in an economic downturn …   The ultimate business dictionary

  • Degree Of Operating Leverage - DOL — A type of leverage ratio summarizing the effect a particular amount of operating leverage has on a company s earnings before interest and taxes (EBIT). Operating leverage involves using a large proportion of fixed costs to variable costs in the… …   Investment dictionary

  • Операционный левередж, Операционный рычаг, Операционная зависимость (OPERATING LEVERAGE)  — Зависимость постоянных операционных расходов (постоянные производственные, реализационные и административные расходы) от деятельности компании. Высокая степень зависимости означает, что относительно небольшие изменения в объеме реализации… …   Словарь терминов по управленческому учету

  • Leverage (finance) — In finance, leverage (sometimes referred to as gearing in the United Kingdom) is a general term for any technique to multiply gains and losses.[1] Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.[2]… …   Wikipedia

  • Leverage-Effekt — Dieser Artikel wurde aufgrund inhaltlicher und/oder formaler Mängel auf der Qualitätssicherungsseite des Portals Wirtschaft eingetragen. Du kannst helfen, indem Du die dort genannten Mängel beseitigst oder Dich an der Diskussion beteiligst. Der… …   Deutsch Wikipedia

  • Leverage Ratio — 1. Any ratio used to calculate the financial leverage of a company to get an idea of the company s methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at… …   Investment dictionary

  • leverage — 1. noun a) A force compounded by means of a lever rotating around a pivot; see torque. A crowbar uses leverage to pry nails out of wood. b) By extension, any influence which is compounded or used to gain an advantage …   Wiktionary

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