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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Operating Leverage  

Definition 1.

A measurement of the degree to which a firm or project relies on fixed rather than variable costs.
 

Definition 2.

xed operating costs, which are characterized as leverage because they accentuate variations in profits.
 

Definition 3.

Fixed operating costs divided by total (fixed plus variable) operating costs.
 
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