Financial Knowledge: Operating Leverage
(1) the meaning of operating leverage
Operating leverage refers to the existence of fixed costs. cause Changes in profit before tax are greater than changes in production and sales volume. lever Effect.
(two) measurement of operating leverage
The most commonly used indicator of operating leverage is business.
lever
Coefficient or operating leverage.
The operating leverage coefficient refers to the rate of change in profit before tax, which is equal to the multiple of volume change rate in production and marketing business.
The formula is:
Operating leverage ratio = pre tax profit change rate / production and sales volume change rate
The simplified formula of operating leverage coefficient is:
Reporting period operating leverage ratio = base period marginal contribution / base interest pre tax profit
(three) relationship between operating leverage and operational risk
Operating leverage coefficient, fixed cost and operating risk change in the same direction. That is, under other factors, the higher the fixed cost and the greater the leverage coefficient, the greater the risk of enterprise operation.
The relationship can be expressed as:
Operating leverage coefficient = base period marginal contribution / (marginal contribution base fixed cost)
- Related reading
- Professional market | A Brief Account Of The History Of Adidas Collecting Money With Pharrell Williams
- market research | What Is The Business Logic Of Shanghai K11'S Miracle Of Shopping Malls?
- Show show | China Fashion Week: Look At Oriental Fashion Day How To Serve The Designers In All Directions
- Popular this season | China Fashion Week] Oriental Fashion Day Brings Together Fashion Industry Elites To Highlight Oriental Fashion Colors.
- neust fashion | [Shanghai Fashion Week] Want To Wear Thin, Undress, Meat And Fish Thread, Where Is Shoulder Line Important?
- Fashion character | At The Age Of 90, There Is An Elegance Called Elizabeth S.
- Dress culture | "To Make The World More Human"
- neust fashion | 大朗那“燒不著”的毛衣
- Leisure clothes | Chen Wen 2018/19 Autumn Winter Cowboy Fashion Release
- Daily headlines | Interview With Zhou Shikang, Director Of The Organizing Committee Of China (Shenzhen) International Fashion Festival, To Help Shenzhen Move Towards A New Era Of Global Fashion Home.
- In 2010, The Garment Industry In Shenzhen Realized An Output Value Of About 150000000000 Yuan.
- Zhongshan: The EU'S Clothing Exports Increased By &Nbsp; Children'S Clothing Safety Inspection Strengthened.
- Yu Dan: Good Clothing Is A Tacit Understanding Between A Person And A Brand.
- 湖南省服裝行業(yè)協(xié)會(huì)第三屆代表大會(huì)在長(zhǎng)沙召開(kāi)
- Riccardotisci To Regain The Love Of Latin America
- 導(dǎo)入有機(jī)棉開(kāi)發(fā)環(huán)保童裝
- No Slurry Technology To Promote The Long Road
- The Role Of Financial Leverage
- Domestic Clothing Brands Begin To Explore Overseas Online Shopping Market
- What Is Financial Leverage?