Operating leverage
	• Fixed operating costs, so-called because they accentuate variations in profits.
	• The use of fixed operating costs to magnify the effects of changes in sales on the firm's earnings before interest and taxes (EBIT).
	Embedded terms in definition
	Earnings before interest and taxes Earnings Interest Sales
	Related Terms
	Annual fund operating expenses Debt leverage Degree of financial leverage Degree of operating leverage Degree of total leverage Financial leverage Financial leverage clientele Financial leverage multiplier Financial leverage ratios Homemade leverage Leverage Leverage clientele Leverage ratios Leverage rebalancing Negative leverage Net benefit to leverage factor Net operating losses Net operating margin Operating assets Operating band Operating breakeven point Operating cash flow Operating cash inflows Operating change restrictions Operating cycle Operating expenses Operating exposure Operating flows Operating income Operating lease Operating margin Operating profit Operating profit margin Operating profit ratio Operating risk Operating unit Short run operating activities Short term operating financial plans Total leverage

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