Sentences with phrase «high fixed costs»

The critiques miss the key point: in industries with high fixed costs and low marginal costs, aside from congestion, efficient pricing has little to do with marginal costs.

Without trying to sound crass of course ROE will continue at it's current level he is buying a railroad (high fixed cost business and a monopoly) it's not like someone is going build a competeing railroad in the same area there will only ever be one and it will always be cheaper than trucking or shipping by air.

-- And the sale of a loss - making division can radically revise a company's P&L — particularly true of small companies with proportionately higher fixed costs (which really leverages their profitability).

Many high earners are leaving and are being replaced by poorer newcomers, a dynamic that has saddled the state with high fixed costs even as taxes and services can not keep up with growing demand.

Old vs. new, slow vs. flexible, old - fashioned structures hampered by high fixed costs vs. slim and highly flexible start - ups, single - digit profit margins vs. 50 or 75 percent margins.

They can help predict that future earnings will be high based on an ROE analysis (book value equals E) or they can indicate, and often do, very high overhead and very high fixed costs.

This is particularly true of small (er) companies with proportionately higher fixed costs, which really leverages their profitability.

And it may only have begun: recall the NYT review of Free that noted: it can be extremely hard to survive in a business with high fixed costs, low marginal costs and relatively easy entry.

Because regulatory compliance has a high fixed cost, small businesses face a larger per - employee cost of adhering to government regulations than big companies.

For example, in the movie industry, this «supply chain» consisted of theaters, and DVD sales through large retailers, both of which have high fixed costs and limited shelf space.

High fixed costs are great when revenues are rising as income grows at a faster rate than sales.

These include a typically higher representation of cyclical sectors in markets outside the United States and ta generally higher level of operating leverage in these markets attributable to higher fixed costs and less flexible labor.

The dairy plants have high fixed costs and significant economies of scale, exacerbating Murray Goulburn's challenges as it tries to stem the loss of milk supply following a disastrous decision two years ago to retrospectively cut milk prices to farmers.

Fitch summed up the threats by noting that Oneida County faces «high fixed costs, growing mandated social service expenditures, federal and state aid reductions and limited current and potential revenue flexibility...» Fitch also noted that despite tax increases, Oneida County has also spent down fiscal reserves to limit the burden on taxes.

At the same time, local governments that have high fixed costs will have trouble reducing expenses given the lack of discretion spending.

Moody's says the outlook on the gaming industry in the United States writ large is negative due to weakening revenues, lower demand and high fixed costs — suggesting the long - term impact in New York from casino revenue may be elusive.

«Long term, Connecticut will continue to face significant fiscal challenges, including looming budget gaps starting in fiscal 2020 and high fixed costs,» Moody's stated in its weekly credit outlook, published Thursday.

Asahiko Taira, a JAMSTEC executive director, says that with their high fixed costs, «reductions will come out of pure research - related money,» though they will try to minimize the impact on the drill ship Chikyu, Japan's contribution to the Integrated Ocean Drilling Program.

Public school districts have a high fixed costs, so when funds «follow» the student, districts often lose more in revenue than they can save in costs.

Nowhere is this more painful than in rural Wisconsin communities, where public schools, the very heart of their communities, struggle with higher fixed costs and other challenges.

Despite the highest fixed costs (for five years), he is the most customer - friendly.

With high fixed costs to deal with, declines of this magnitude can't be absorbed without making big structural changes.

Car ownership has high fixed costs and unexpected ones like repairs.

This type of thinking fundamentally ignores the high fixed cost business model and the general history that Ford possesses.

Regular banks with high fixed costs have trouble maintaining their profit margins when interest rates are low, because the spread between borrowing and lending rates is so small.

The higher the fixed costs (interest expense) the higher the financial risk.

The first way is to choose a production method that has high fixed costs and low variable costs, which is typically true of cyclical companies.

There are a lot of clever lawyers, accountants, and actuaries that the wealthy employ, but for average people, the high fixed costs won't make it work.

It may take a while, but eventually the overindebted companies with high fixed costs will be outcompeted by their Japanese rivals.

With opportunistic holdings we are often invested in falling knives or businesses that risk bankruptcy due to large amounts of debt, high fixed costs or turnaround situations.

Of course, if a firm has high fixed costs and low variable costs (high operating leverage), its financial position is less stable than that of a company that has low fixed costs and high variable costs.

Third, a new startup will have higher fixed costs to amortize over the new business written.

And more sophisticated investors will often avoid companies with (chronically) low margins & high fixed costs — effectively, these are leveraged companies too & present much of the same risk.

High fixed costs is one drawback, however.

Huge idle plants with high fixed costs and unruly labor force.

Large piles of debt (financial leverage) combined with high fixed costs (operational leverage) create a very high total operational leverage.

The mid-size ones are crushed under higher and higher fixed costs and are often faced with the difficult «grow or go» dilemma, with some taking a shot at the top league (Sprüth Magers, Sean Kelly, Lehmann Maupin, Friedrich Petzel, and more), while others quit with interesting insights in their «lot» (d'Amelio Terras, Martin Klosterfelde, Nicole Klagsbrun, Jérôme de Noirmont, DCKT, Galerie Kamm, Giti Nourbakhsch).

Unfortunately wind has the highest fixed costs in spite of costing less per MW of capacity than nuclear.

Companies most at risk include those that operate in markets with one or more of the following characteristics: - a small number of competitors selling similar commodity products transparently priced; - a market with high fixed costs; and / or - a highly concentrated market.

Law firms have traditionally had high fixed costs — expensive lawyers and prime real estate, principally.

The high fixed cost of agency management pushes the break - even point of the insurers even higher.

Currently, it is difficult for cellular providers to offer new services to customers because of the high fixed costs associated with creating new billing systems.