Leverage in its most general sense means the ability to magnify results at a relatively low cost. In business, you make decisions about leverage that affect your profitability. When you evaluate ...
Learn how the degree of combined leverage (DCL) combines financial and operating leverage for optimal company strategy and ...
Rumors of leverage's death have been greatly exaggerated. In the aftermath of the 2008 financial crisis an abundance of leverage — borrowed money used to amplify returns — was blamed for exacerbating ...
Learn how double leverage works within bank holding companies, its implications for financial risk, and real-world examples ...
When analyzing any company, one of its hidden mysteries is operating leverage. Distinct from financial leverage, the “operating” type refers to having a large percentage of fixed expenses. Low ...
We are about to defend, and in some cases praise, the use of leverage and derivatives in managing a pension plan. Although that may seem like a fool’s errand given the devastating financial crisis we ...
Robert Kiyosaki is the outspoken personal finance icon famous for “Rich Dad Poor Dad,” the hugely successful personal finance ...
The importance of operating leverage lies in its relationship to your business' resilience, budget and bottom line. Operating leverage refers to the ratio of fixed business costs to revenue. While ...
In technical terms, leverage is the ratio between the amount of money you have in your account and the total size of positions the broker allows you to take. You’re using leverage every time you enter ...
Given the frequent reference to operating leverage during discussions of banks' financial performance, it's natural to assume that there is some common definition. Only there isn't. With the ...