Examples of using Operating leverage in English and their translations into Vietnamese
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Computer
The high operating leverage;
Financial leverage is quite different from operating leverage. .
There is negative relation between operating leverage and debt level in capital structure.
If the ratio of fixed costs to revenue is high(i.e.gt;50%)the company has significant operating leverage.
What are the risks of high operating leverage and high financial leverage?
Operating leverage is a term used to describe a company's level of fixed expenses relative to its revenue.
A company with a greater ratio of fixed to variablecosts is said to be using more operating leverage.
A higher degree of operating leverage shows a higher level of volatility in a company's EPS.
A combined leverage ratio refers to the combination of using operating leverage and financial leverage. .
A higher amount of operating leverage indicates a greater degree of volatility in a firm's EPS.
In addition, while interest margin may be a bit of a headwind soon, Bank of America has been investing heavily in technology, cutting a huge amount of non-interest overhead costs out of its business,leading to 18 straight quarters of operating leverage and higher profit margins, even in quarters of negative growth.
Similarly, one could calculate the degree of operating leverage by dividing a company's EBIT by its EBIT less its interest expense.
A high operating leverage ratio illustrates that a company is generating few sales, yet has high costs or margins that need to be paid off.
Capital-intensive industries tend to have high levels of operating leverage, which is the ratio of fixed costs to variable costs.
The degree of operating leverage(DOL) is a measure, at a given level of sales of how a percentage change in sales volume will effect profits.
The growth wasmainly attributed to consistent sales performance along with operating leverages and financial savings derived from cost control measures.
A company that has high operating leverage bears a large proportion of fixed costs in its operations and is a capital intensive firm.
Fixed costs do not change the capital structure of the business,but they do increase operating leverage which will disproportionately increase/decrease profits relative to revenues.
Besides operating leverage, the capital intensity of a company can be gauged by calculating how many assets are needed to produce a dollar of sales, which is total assets divided by sales.
Cantor Fitzgerald analyst LouiseChen has written that the revenue gains,“operating leverage, pipeline advancements, return of capital to shareholders, and M&A are all underappreciated.”.
This self-reinforcing source of operating leverage must be managed carefully to make sure that it does not result in the development of dogmatic cults with little capacity for change.
One can calculate the degree of operating leverage by dividing the percentage change of a company's earnings per share by its percentage change in its earnings before interest and taxes over a period.
For example,when viewing the balance sheet and income statement, operating leverage influences the upper half of the income statement through operating income while the lower half consists of financial leverage, wherein earnings per share to the stockholders can be assessed.
From expanding our product portfolios to optimizing the operating leverage across our production facilities as well as implementing effective cost controls, our holistic and prudent approach is aimed at facilitating the Group's long-term growth and creating value for our shareholders.".
To properly evaluate these statistics, it is important to keep in mind that leverage comes in several varieties,including operating, financial and combined leverage.
While the majority of tablets will run Google Android,both RIM's PlayBook and HP's TouchPad will leverage proprietary operating systems.
As a downstream value, our customers can leverage AR to dramatically improve operating and maintaining their facility.”.
During the show Nvidia's announced it would leverage the 64-bit, real-time operating system in its AI autonomous vehicle platform.
Due to innovative solutions eachentrepreneur will be able to use the leverage of thousands of entities operating in the GUARIUM network.
NFC, which companies such as Apple and Square are also working with, will be native on Gingerbread, though Google expects startups todevelop mobile applications for the open-source Android operating system that leverage NFC.