Other real risk factors include
low operating leverage; product obsolescence; low barriers to entry; regulatory risk; loss of suppliers; a concentration of buyers; low current ratios or long periods of low cash flow relative to short - term liabilities, to name a few.
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.»
The company recently delivered its first quarter of GAAP pre-tax profit since Q4 2012, due in part to progress in improving
operating leverage and the
lowest quarter of stock - based compensation expense in more than three years.
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.
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.»
That structure is no longer sustainable because: (1) much of the «
leveraged» work is now performed outside law firms (disaggregated); (2) at the
lower rungs, machines, paraprofessionals, and / or lawyers
operating in
lower - cost structures and / or markets are now performing the work; (3) many «legal» tasks have been transformed from «services» to «products»; (4) law companies that are well - capitalized, tech and process savvy, and with customer - centric models aligning provider to consumer economically and culturally have migrated up the complexity chain.
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.
Most importantly, they
operate with
lower leverage, eschew cross collateralization and lend to
lower loan - to - values.
Independently owned and
operated since 1996, we
leverage technology to streamline the closing process and
lower closing costs without sacrificing our exemplary customer service.