Sentences with phrase «operating leverage»

Within the solid waste business, we saw strong operating leverage in the disposal, small container and large container businesses.

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

However, most businesses have something known as operating leverage built into them.

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

The company's strong operating leverage produced robust free cash flow and a material improvement in return on invested capital.

They are now lean and mean, and this improves operating leverage, so that even a modest improvement in the economy could potentially produce a direct, positive impact on their earnings.

Changes in demand don't affect a firm as much if they have low operating leverage.

Businesses with opportunities to reduce costs and improve margins through internally focused efforts should be able to capitalize on operating leverage in an expanding economy or modestly grow earnings should sales remain flat.

Operating leverage consists of the profit growth arising from growing revenues faster than expenses.

That makes us avoid financial leverage, and to a lesser extent operating leverage.

I am not surprised it is cheap as operating leverage works both ways in asset management businesses.

The breadth, scale and balance of our business model, together with our industry - leading operating leverage, allow us to deliver superior financial performance through the cycle.

We think this positions the company for significant operating leverage as headwinds turn to tailwinds, as we see three principle catalysts that we think will unlock the value of American Vanguard over the next 12 to 24 months.

So look for revenues to keep waxing, and for operating leverage to get stronger as Moynihan fulfills his pledge to drive down costs well into next year, then hold the expense line steady thereafter as loans and interest income keep growing.

Activity on the Las Vegas strip is strengthening, and this should enable MGM to benefit from operating leverage in its significant Las Vegas assets.

Venture capitalist Alex Taussig describes the financial aspects of scalability in this way: «Businesses that scale are businesses with operating leverage.

«They're now aggressively pursuing land deals with short payback periods that can deliver strong operating leverage even in the absence of large gains in house price appreciation,» wrote Wetenhall.

Both the deposit base and the loan portfolio are now growing briskly, generating big operating leverage.

Moynihan is using operating leverage to drive profits.

«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 analyst warned that Delphi will initially suffer one - time adjustment costs associated with the spinoff from Aptiv PLC (NYSE: APTV) and excess capital expenditures, but it will soon realize operating leverage and margin expansion.

The bullish case for Wayfair Inc (NYSE: W) is based on the belief the online furniture retailer is building a large enough moat and can generate sufficient operating leverage to become highly profitable.

«Strong client activity and good expense discipline combined to drive positive operating leverage as we continue to optimize and strengthen our balance sheet.

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

IAM is now consistently trading around $ 1.48, offering a 5.4 % yield and buying back shares while I wait for better operating leverage.

There is huge operating leverage in the business.

July has been ugly for me — I am down considerably more than the market, but these things happen... energy is off, and though I am market weight, the names I own have considerable operating leverage.

What about operating leverage?

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.

An unlevered firm in the financial sense still possesses operating leverage and volatility of sales.

«As controversy subsides post-holidays, we expect investor interest to pick up ahead of a stronger FY19 title slate, renewed digital optimism, and operating leverage potential.

But how do firms ensure they have the ability to rapidly staff back up to something like their legacy operating leverage when the need arises?

As practitioners in these sectors pause, one of the main changes we think Brexit will accelerate will be thinner operating leverage models in the profession.

So why would they work for comedy when there's a smaller market, less operating leverage, etc?»

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

We are energized by recent technology improvements and are poised for balanced growth with significant operating leverage.»

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.

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.

We continue to believe businesses with opportunities to reduce costs and improve margins through internally focused efforts should be well - positioned to capitalize on operating leverage in an expanding economy or modestly grow earnings should sales plateau.

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.

We can view it as a buildup of operating leverage in one group of exporting nations, and a buildup of financial leverage in the importing nations.

That combination of moderate revenue growth, few bad loans, and falling costs provides what Moynihan most prizes, «operating leverage» that propels earnings far faster than revenues.

The CEO constantly talks about the power of «operating leverage,» one of the levers he calls B of A's «mantras.»

In other words, he claims that B of A can keep growing — and keep in mind that operating leverage should keep profits growing far faster than revenues — without without any boost from retained earnings.

«So, from an operating leverage point of view and a financial point of view, we need to be more rigorous,» he said.

And the bank is not finished yet, with Chavez saying Goldman would «continue to diversify our client footprint» and would continue to emphasize «producing higher revenues from more recurring sources such as investment management and lending, generating significant operating leverage and diversifying the long - term earnings profile of the firm.»

Swinburne added that a deceleration of ad revenue growth «meaningfully reduces the company's ability to drive any operating leverage.»

First, its expenses have expanded a lot less than its fees, providing strong «operating leverage.»