BNET Business Dictionary

Business Definition for: Operating Leverage

  • the ratio of a business's fixed costs to its total costs. As the fixed costs have to be paid regardless of output, the higher the ratio, the higher the risk of losses in an economic downturn.

Additional Resources

Publicis Plays Catch-Up With Unilever Mag Acquisition; Operating Leverage is Key
Some clarity is beginning to emerge as to why exactly Publicis -- whose dominant client is Procter & Gamble -- bought Unilever's Pour Tous Vous Dire web site and magazine in France. It's all about the operating leverage provided by owning the media your clients are buying. by Jim Edwards
Tags: Acquisition, Unilever PLC, Mergers & Acquisitions, Web Site Development, Corporate Law, Advertising & Promotion, Web Technology, Channel Management, Investment, Finance, Internet, Business Operations, Marketing, Jim Edwards
Blog posts 2009-09-10
A.M. Best's Methodology: Perspective on Operating Leverage
OLDWICK, N.J. -- In forming an overall opinion of a company's balance sheet strengthCothe most important area in determining a company's ability to meet its current and ongoing obligations to policyholdersCoA.M. Best Co. reviews the organization's financial leverage. Financial leverage, through debt or debt-like instruments, may place a call on...
Tags: A.M. Best Co., company, financial
Research articles 2006-11-06
Fujitsu Reports Fiscal 2007 Third-Quarter Financial Results; Operating Income Rises Sixfold on Higher Operating Leverage
Tokyo, Japan, Jan 31, 2008 - JCN Newswire - Fujitsu Limited, a leader in customer-focused IT and communications solutions for the global marketplace, today reported consolidated operating income of 46.6 billion yen (US$417 million) for the third quarter of fiscal 2007 (October 1, 2007 - December 31, 2007), a sixfold...
Tags: Fujitsu Ltd.
Research articles 2008-01-31
'Sales growth provides SDM with operating leverage'
TORONTO -- In what has nearly become a quarterly refrain, Shoppers Drug Mart SDM recorded another double-digit rise in net income for both the second quarter and first half of fiscal 2006 as a result of robust sales expansion, a continually improving sales mix and operating efficiencies. Earnings for...
Tags: Shoppers Drug Mart Ltd.
Research articles 2006-08-14
Oakley Sees Strong First Quarter 2000 Sales and Earnings; Cites Improved Operating Leverage and Restructured Footwear Operations
Business Editors FOOTHILL RANCH, Calif.--BUSINESS WIRE--March 21, 2000 In advance of its presentation at the Deutsche Bank Alex Brown Consumer Growth Stock Conference in Naples, Fla., Oakley, Inc. (NYSE:OO) Chief Operating Officer Link Newcomb Tuesday said the company expects to report record net sales for the first quarter...
Tags: Oakley Inc.
Research articles 2000-03-21
IBM Q2 2009 Earnings Call Transcript
Question-and-Answer Session Operator Operator Instructions Our first question comes from Toni Sacconaghi with Sanford Bernstein. Toni Sacconaghi - Sanford C. Bernstein Thank you. Mark, you wrapped up by saying that you felt the company had tremendous operating leverage as the economy picked up. If I simply look at what...
Tags: Revenue, Call Transcript, Earnings, IBM Corp., Operational Accounting, Finance, Seeking Alpha
Earnings calls 2009-07-16
Avnet Q3 2007 Earnings Call Transcript
Question-and-Answer SessionOperator Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. Operator Instructions Our first question is from Jim Suva with Citigroup. Please state your question. Jim Suva - Citigroup Great. Thank you very much and congratulations. Can you talk a little bit about, now...
Tags: AvNet Inc.
Earnings calls 2007-04-26
BlackRock, Inc. Q3 2007 Earnings Call Transcript
Question-and-Answer Session Operator [Operator Instructions]. Your first question comes from Craig Siegenthaler with Credit Suisse. Craig Siegenthaler - Credit Suisse Thanks. The performance fee number, you mentioned international equity hedge funds, can you give us some more detail what's in this number in terms of...
Tags: BlackRock Inc.
Earnings calls 2007-10-17
Honeywell International, Inc. Q3 2007 Earnings Call Transcript
Question-and-Answer SessionOperator [Operator Instructions]. Your first question comes from the line of Shannon O'Callaghan with Lehman Brothers. Shannon O'Callaghan - Lehman Brothers, Inc. Good morning, guys. David M. Cote - Chairman and Chief Executive Officer Hi Shannon. David J. Anderson - Senior Vice...
Tags: Honeywell International Inc.
Earnings calls 2007-10-20
Honeywell International Inc. Q3 2007 Earnings Call Transcript
Question-and-Answer SessionOperator [Operator Instructions]. Your first question comes from the line of Shannon O'Callaghan with Lehman Brothers. Shannon O'Callaghan - Lehman Brothers, Inc. Good morning, guys. David M. Cote - Chairman and Chief Executive Officer Hi Shannon. David J. Anderson - Senior Vice...
Tags: Honeywell International Inc.
Earnings calls 2007-10-19
Wells Fargo Q2 2007 Earnings Call Transcript
Earnings Call ExcerptWells Fargo & Co. WFC Q2 2007 Earnings Call July 17, 2007 8:00 am ET Executives Bob Strickland - SVP & IR Howard Atkins - Sr. EVP & CFO Presentation Bob Strickland Hello, this is Bob Strickland. Thank you for calling into the Wells Fargo Second Quarter...
Tags: Wells Fargo & Co.
Earnings calls 2007-07-17
United Health Services Inc. Q1 2008 Earnings Call Transcript
Question-and-Answer SessionOperator Operator Instructions. Your first question comes from Christine Arnold of Morgan Stanley. Christine your line is open. Steve Filton Next. Operator Your next question comes from Adam Feinstein of Lehman Brothers. Adam Feinstein - Lehman Brothers Okay and I am actually here. So, great...
Tags: Universal Health Services Inc.
Earnings calls 2008-04-25
Royal Bank of Canada F4Q07 (Qtr. End 10/31/07) Earnings Call Transcript
Question-and-Answer Session Operator Thank you. We will now take questions from the telephone line. [Operator Instructions]. The first question is from Jim Bantis from Credit Suisse. Please go ahead. Jim Bantis - Credit Suisse Hi. Good afternoon. Question for...
Tags: Bank Of Canada, Banking, Call Transcript, Credit Suisse Group AG, Earnings, Finance, Financial Services, Operational Accounting, Revenue, Seeking Alpha
Earnings calls 2007-11-29
AllianceBernstein Holding L.P. Q3 2007 Earnings Call Transcript
Question-and-Answer SessionOperator Thank you. [Operator Instructions]. Thank you. Our first question is coming from Bill Katz from Buckingham Research. Please go ahead. William Katz - Buckingham Research Group Okay. Thank you and good afternoon. I was just wondering if you could talk a little bit about...
Tags: AllianceBernstein Holding LP
Earnings calls 2007-10-25
1-800-FLOWERS.COM, Inc. F1Q09 (Qtr End 09/30/08) Earnings Call Transcript
Question-and-Answer SessionOperator Operator instructions We’ll take our first question from Jennifer Watson from Goldman Sachs. Jennifer Watson – Goldman Sachs Thank you. Can you talk a little bit about where the bulk of the OpEx leverage is coming from? Are you guys benefiting from adding on these acquisitions and...
Tags: 1-800-Flowers.com Inc., Acquisition, Business, Business Operations, Call Transcript, Corporate Law, Earnings, Finance, Goldman Sachs Group Inc., Investment, Mergers & Acquisitions, Seeking Alpha
Earnings calls 2008-10-28
The Allstate Corporation Q3 2007 Earnings Call Transcript
Question-and-Answer SessionOperator Thank you sir. [Operator Instructions] Our first question is from David Lewis from Raymond James. Your question please. David O. Lewis - Raymond James Thank you and good morning. Thomas J. Wilson - President and Chief Executive Officer : Good morning. ...
Tags: Allstate Corp.
Earnings calls 2007-10-20
Knight Capital Group, Inc. Q3 2007 Earnings Call Transcript
Question-and-Answer Session Operator Yes sir. And thank you. The question-and-answer session will be conducted electronically. [Operator Instructions]. And we will take our first question from Chris Allen from Banc of America Securities. Please go ahead. Christopher J. Allen - Banc of America Hey guys. How...
Tags: Knight Capital Group Inc.
Earnings calls 2007-10-17
Tyco International F3Q07 (Qtr End 6/29/07) Earnings Call Transcript
Question-and-Answer SessionOperator Operator Instructions And our first question comes from the line of Scott Davis from Morgan Stanley. Please go ahead. Scott Davis - Morgan Stanley Good morning, guys. Ed Breen Good morning, Scott. Scott Davis - Morgan Stanley A...
Tags: Tyco International Ltd.
Earnings calls 2007-08-07
Cisco, Nortel, Avaya, Microsoft and... Shoretel?
Cisco, Microsoft, Avaya and Nortel are familiar names, but John Combs would like to make sure people keep Shoretel in mind as well, even if he has to throw a few sharp elbows to get a seat at the table. Combs is the chairman and CEO of...
Tags: Revenue, Nortel Networks Corp., Unified Communications, ShoreTel, Microsoft Corp., Cisco Systems Inc., Avaya Inc., Combs, Collaboration, Sales Strategy, Sales, Michael Hickins
Blog posts 2009-03-10
Webster Financial Corporation Q3 2007 Earnings Call Transcript
Question-and-Answer SessionOperator Thank you. [Operator instructions]. Okay, our first question comes from the line of Mark Fitzgibbon with Sandler O'Neill. Please proceed with your question. Mark Fitzgibbon - Sandler O'Neill & Partners Hi, good morning. Gentlemen, you guys have had a... some pretty bad luck with...
Tags: Webster Financial Corp.
Earnings calls 2007-10-24