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 ...

Operating leverage is the fraction of a company's costs that are fixed. Firms with a lower fraction of variable costs and a higher fraction of fixed costs have a higher operating leverage, which means ...

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 ...

The credit quality of cannabis companies has taken center stage in 2023 as the equity capital markets remain shuttered and growth and operating profits remain constrained. Cannabis companies have ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. David ...

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 ...

Advanced Micro Devices (AMD) announced its fiscal first quarter 2024 financial results yesterday, Tuesday, Apr. 30, 2024, after the market close. This article points out the primary problem I see in ...

What do banks, airlines and hotels have in common? The answer is high operating leverage (also known as operating gearing). This means that fixed costs (predominantly property and staff) are a high ...