Sentences with phrase «high operating leverage»

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.

Operating leverage High operating leverage (also known as operating gearing) means that fixed costs (predominantly property and staff) are a high proportion of total costs in the profit and loss account.

They have high operating leverage, and will only prosper when demand is strong / credit is good.

If a company has high operating leverage, and sales decline, it can have a shockingly disproportionate effect on the net income of the firm.

Not exact matches

«For a lot of these big producers they get operating leverage out of higher volumes, so they will survive in the low cost model.»

«We are very concerned that Remington will be unable to refinance debt that comes due in April 2019 given its weak operating performance and high financial leverage,» Kevin Cassidy, a Moody's Investors Service Inc analyst, wrote in a research note last month.

Another, perhaps more common, situation is when a business has a high degree of operating leverage.

«To Marathon's way of thinking, it is not wise to introduce financial leverage into a business that already has a high degree of operating leverage.

[eg debt, fraud, disruption, obsolescence, operating leverage, high valuation, sovereign risk, regulatory risk, patent / lawsuit loss, closed credit markets, systems failure, natural hazards, commodity price collapse / spike, debt re-financing, large risky acquisition, derivative / FX / interest rate risks, project risks, contract loss, brand damage etc].

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.

Borrowing money against company assets can help you generate liquidity to raise capital or create greater operating flexibility with generally few or no financial covenants, including higher balance sheet leverage.

The key elements of our business strategy are to build and enhance leading brands, focus on opportunities in high - growth and high - margin categories, increase presence in high - margin channels and packages, leverage our integrated business model, strengthen our route - to - market and improve operating efficiency.

During the 2014 - 15 school year, Dr. Kishimoto rolled out a board - adopted strategic operating plan focused on three high leverage strategy areas: scholarship, innovation, and technology.

The Mission of the California Charter Schools Association is to influence the legislative and policy environments, leverage collective advocacy, and provide resources to support our members in developing and operating high quality, charter schools reflective of California's student population.

However, an aspect of leveraged loans that was not developed in this article is that the loans are secured by the assets of the operating company and the terms are usually superior to those of high - yield bonds, which are generally unsecured.

Trading near tangible book, 6x earnings, with high quality assets and reasonable operating leverage, it is a reasonable play for the fourth quarter.

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 labour.

On the assumption that the «average high BM firm is financially distressed,» Piotroski chose nine fundamental signals to measure three areas of the firm's financial condition: profitability, financial leverage / liquidity, and operating efficiency:

Due to these characteristics, leveraged mutual funds typically have higher operating expenses as a percentage of assets compared to other funds, with a total management expense ratio of typically 3 % to 5 % per year compared to 1.3 % to 1.5 % for a non-leveraged mutual fund.

Because of the cyclical nature of the business and the high level of operating leverage ABH needs a very conservative capital structure to reduce the possibility of future bankruptcy.

Each veterinary practice under the MAVANA banner operates independently and benefits from a corporate structure to deliver cost efficiencies, leverage economics of scale for improved purchasing power, offer more options for liquidity, and increase relevancy in the rapidly consolidating animal health industry while continuing to deliver the highest quality of medicine and customer service.

They're also operating at a fundamental enough level that the things they find can be used by many other researchers to build on their research, so the leverage effect is high.

As Boulder Wind Power states on their website, «The BWP design eliminates the mechanical losses associated with a gearbox, while leveraging the higher efficiencies at lower operating speeds enabled by permanent magnet rotor excitation.»

You leverage off of lower commission levels, as a means to try and convince consumers that you're operating at a higher moral level, and consequently must also be more ethical than those who would charge more.

Our immediate focus is on the highest points of leverage within the company to drive better business results, develop talent and operate the company on a more integrated basis.