Measuring Operating Leverage PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Measuring Operating Leverage PDF full book. Access full book title Measuring Operating Leverage by Huafeng (Jason) Chen. Download full books in PDF and EPUB format.
Author: Huafeng (Jason) Chen
Publisher:
ISBN:
Category :
Languages : en
Pages : 82
Get Book Here
Book Description
We examine a simple measure of operating leverage: the ratio of fixed costs (measured by depreciation and amortization plus selling, general, and administrative expenses) to the market (or book) value of assets. We find that this measure of operating leverage positively predicts returns. Operating leverage is not explained by common factors, distinct from the gross profitability effect, and is not explained by organization capital. Furthermore, a simple two-factor model with the operating leverage factor works at least as well as, but does not subsume, the Fama and French five-factor model.
Author: Huafeng (Jason) Chen
Publisher:
ISBN:
Category :
Languages : en
Pages : 82
Get Book Here
Book Description
We examine a simple measure of operating leverage: the ratio of fixed costs (measured by depreciation and amortization plus selling, general, and administrative expenses) to the market (or book) value of assets. We find that this measure of operating leverage positively predicts returns. Operating leverage is not explained by common factors, distinct from the gross profitability effect, and is not explained by organization capital. Furthermore, a simple two-factor model with the operating leverage factor works at least as well as, but does not subsume, the Fama and French five-factor model.
Author: Frank M. Reilly
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 37
Get Book Here
Book Description
Author: Mitchell Franklin
Publisher:
ISBN: 9781680922943
Category :
Languages : en
Pages : 746
Get Book Here
Book Description
A less-expensive grayscale paperback version is available. Search for ISBN 9781680922936. Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today's college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the "why" as well as the "how" aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization.
Author: Matthias Kahl
Publisher:
ISBN:
Category :
Languages : en
Pages : 53
Get Book Here
Book Description
Using a measure of operating leverage that directly reflects the importance of fixed operating costs in firms' cost structures, we investigate why operating leverage is related to financial policies. High fixed cost firms have lower leverage and larger cash holdings than low fixed cost firms not only to avoid default. An important reason for their conservative financial policies is their desire to sustain investment when sales are low. Fixed costs have important consequences for other aspects of firm behavior. In particular, high fixed cost firms behave as if they are financially constrained even if by traditional measures they are unconstrained.
Author: Nirmal Ghorawat
Publisher:
ISBN:
Category :
Languages : en
Pages : 5
Get Book Here
Book Description
Hitherto, in determining Operating Leverage, it is assumed that selling price does not vary with changing price of goods, thus inherently violating the Law of Demand, where price and quantity are inversely proportional to each other. This paper presents the sensitivity of Operating profits to simultaneous change in selling price and quantity of goods sold and formulates functions referred to as Price Leverage - which serves as a measure for the impact of changes in selling price on the operating profit and Total Operating Leverage - which serves as a measure for the combined impact of simultaneous change in selling price and quantity of goods sold. Further, the paper presents the application of concepts of Price Elasticity of Demand to sensitivity of operating profits, for determination of Break-even Point (BEP) and Optimum Capacity Utilization (or the level of Profit Maximization).
Author: David Hillier
Publisher: McGraw Hill
ISBN: 1526848635
Category : Business & Economics
Languages : en
Pages : 755
Get Book Here
Book Description
Now in its fourth edition, Fundamentals of Corporate Finance continues to use its engaging, accessible narrative to give students an introductory overview of the key concepts in modern corporate finance, and the strategies used by firms in this continually changing field. The author uses years of expertise to guide readers through a framework of corporate finance, providing readers with a solid foundation of knowledge. With integrated theories and real-world European examples, the new edition presents the fundamentals of corporate finance in a clear and captivating way. Key Features • New Sustainability in Finance boxes provide awareness on how sustainability and corporate finance are interconnected in every-day life. • Example boxes in every chapter provide real and hypothetical examples, illustrating theoretical concepts such as calculating returns, bond yields and equity. • Real World Insight boxes on prominent topics like mortgages, investing and price models illustrate how corporate finance theories and concepts have been applied to business and decisions. • Up-to-date content reflecting the latest developments in the field, including the growth of ethics and sustainability, the emergence of cryptocurrencies and financial technology, and the impact of Brexit on corporate finance practice. • Coverage of the Covid-19 pandemic and how this has and will impact the field of corporate finance in the future. • Material aligns with external syllabi from professional bodies including ACCA, CIMA and ICAEW.
Author: Robert Parrino
Publisher: John Wiley & Sons
ISBN: 1119371406
Category : Business & Economics
Languages : en
Pages : 882
Get Book Here
Book Description
Parrino's Fundamentals of Corporate Finance develops the key concepts of corporate finance with an intuitive approach while also emphasizing computational skills, enabling students to develop the critical judgments necessary to apply financial tools in real decision-making situations. The fourth edition offers a level of rigor that is appropriate for both business and finance majors.
Author: Jae K. Shim
Publisher: Wolters Kluwer
ISBN: 9780735202085
Category : Business & Economics
Languages : en
Pages : 532
Get Book Here
Book Description
Accompanying CD-ROM ... "includes spreadsheet models with ready-to-use formulas ..."
![Tulsians Financial Management for CA Intermediate Course (Group II): [PAPER 8: Section A] PDF](https://books.google.com/books/content/images/frontcover/pm3FEAAAQBAJ?fife=w80-h100)
Author: CA & Dr. P C Tulsian, Tushar Tulsian & CA Bharat Tulsian
Publisher: S. Chand Publishing
ISBN: 9355016417
Category : Business & Economics
Languages : en
Pages : 1054
Get Book Here
Book Description
This book meets the needs of the students of CA Intermediate (Group II) course for the subject Financial Management. It completely follows the syllabus issued by the Institute of Chartered Accountants of India. It serves as a self-study text and provides essential guidance for understanding of Financial Management and Financial Analysis; Financial Decisions; Capital Investment and Dividend Decisions; and Management of Working Capital. The book has been written in simple and lucid manner covering all the important equations, formulae, figures and practical steps in a systematic manner to aid students learning. Based on the author's proven approach teach yourself style, the book is replete with numerous illustrations, exhibits and solved problems.
Author: Chandra SEKHAR
Publisher:
ISBN: 9781982942373
Category :
Languages : en
Pages : 24
Get Book Here
Book Description
PrefaceI wrote this book Leverages with the following objectives.* To demonstrate to readers that the subject of Leverages simple to understand, relevant in practice and interesting to learn.* To help managers appreciate the logic for making better financial decisions.* To explain the concepts and theories of Leverages in a simple way so readers could grasp them very easily and be able to put them in to practice.* To provide a book that has a comprehensive coverage for leverages and their analysis.* To create a book that differentiates itself from other books in terms of coverage, presentation.This book useful to Students, Job Interviews, Investors, Financial advisers, Financial managers and Fund managers to relate theories, concepts and data interpretation to practice. This book Leverages aims to assist the reader to develop a thorough understanding of the concepts and theories underlying financial management in a systematic way. To accomplish this purpose, the recent thinking in the field of finance has been presented in a most simple, and precise manner.The main features of the book are simple understanding and key concepts.The book contains a comprehensive analysis of topics on Leverages with a view that readers understand financial decisions thoroughly well and able to evaluate their implications for shareholders and the company.This book begins with the discussion of fundamental concepts of Leverages and Capital structure. With this foundation, readers can easily understand the leverages, decision criteria necessary to manage the funds and create and enhance the value of the firm.The text material has been structured to focus on Leverages is in the financial decision making process.The book discusses the theories, concepts, assumptions, underlying financial decisions i.e. investment, financing, dividend and working capital management.It is hoped that this will facilitate a better understanding of the subject matter.Chandra SekharSri Venkateswara University
