Operating Leverage 2

 

Operating Leverage for Small Business: When You Should Use

What is operating leverage and why should you care? Ignoring the financial mumbo-jumbo, operating leverage represents how having debt can affect a company's bottom line profit. In some cases, Operating leverage can improve a company's profits and in others, it can destroy it.

1 year ago
Click here to when operating lever can improve profits and when can lead to the company going bankrupt.
 

Understanding Operating Leverage

Operating Leverage is just one part of your Economic Model. Simply put, operating leverage is the relationship between fixed costs and variable costs.

7 years ago
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