Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Leverage in its most general sense means the ability to magnify results at a relatively low cost. In business, you make decisions about leverage that affect your profitability. When you evaluate ...

The degree of total leverage equation shows the total leverage of a company. You can find the DTL either by multiplying the degree of operating leverage and degree of financial leverage or by dividing ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. David ...

When analyzing any company, one of its hidden mysteries is operating leverage. Distinct from financial leverage, the “operating” type refers to having a large percentage of fixed expenses. Low ...

The key to communicating the benefit of operating leverage is having a costing system that accurately characterizes the nature of cost as fixed and variable based on strong causal relationships. It ...