Operating Leverage

Business / Accounting / Operating Leverage: The extent to which fixed costs are part of a company's cost structure: the higher the proportion of fixed costs, the faster income increases or decreases with sales volumes.

Operating Risk

Business / Finance / Operating Risk: The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. MORE

Operating Cash Flow

Business / Finance / Operating Cash Flow: Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. MORE

Operating Budget

Business / Human Resources (HR) / Operating Budget: A detailed projection of all projected income and expenses during a specified future period. MORE

Operating Cycle

Business / Finance / Operating Cycle: The average time between the acquisition of materials or services and the final cash realization from that acquisition. MORE

Operating Expenses

Business / Finance / Operating Expenses: All expenses related to the ongoing operations of a company, including research and development, sales and marketing, and administrative expenses. Any costs directly attributable to producing goods or MORE

Operating Income

Business / Finance / Operating Income: Sales revenue minus cost of sales and operating expenses. Similar to earnings before interest and taxes, operating income is examined when the earnings of the core business are analyzed. Also referred MORE

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