leverage

Examples of leverage in the following topics:

• Financial Leverage

  • Common ways to attain leverage are borrowing money or buying derivatives.
  • A business entity can leverage its revenue by buying fixed assets.
  • In terms of investments, there exists accounting leverage, notional leverage, and economic leverage.
  • The most obvious risk of leverage is that it multiplies losses.
  • There also exists the risk of involuntary leverage.

• Activity Ratios

  • Activity ratios provide useful insights regarding an organization's ability to leverage existing assets efficiently.
  • Activity ratios are essentially indicators of how a given organization leverages their existing assets to generate value.
  • Degree of Operating Leverage (DOL) - (Percent Change in Net Operating Income)/(Percent Change in Sales)
  • By tracking these metrics over time, and comparing them to the competition, organizations and stakeholders can gauge their competitiveness and overall capacity to leverage assets in the current industry.

• Debt Utilization Ratios

  • When used to calculate a company's financial leverage, the debt usually includes only the Long Term Debt (LTD).

• Introduction

  • We discuss some of the software options you may want to consider in Chapter 10, "Leveraging with information technology".

• Debt Finance

  • Companies also use debt in many ways to leverage the investment made in their assets, "leveraging" the return on their equity.
  • This leverage, the proportion of debt to equity, is considered important in determining the riskiness of an investment; the more debt per equity, the riskier.

• Information and Risk Trade-Off

  • Risks such as these affect sales, which in turn affect the amount of operating leverage a company should utilize.

• Harnessing technology for global business success

  • There are multiple ways to implement and leverage technology into a business.

• Customer Relationship Management

  • Customer relationship management focuses on improving retention through improving communication with consumers, and leveraging data to better understand needs.

• Managing differences in organizations

  • After the appearance of conflict, team members can create a true learning environment where they can perform far beyond expectations by leveraging their differences.
  • By truly embracing diversity, leveraging the talent within multicultural teams, and approaching diversity as means to higher knowledge and productivity, organizations will effectively manage differences, to achieve competitive advantage successfully.

• Introduction

  • Leveraging external relationships requires a strategic perspective that ranges from obtaining reliable supplies of raw materials for internal production processes to outsourcing entire business processes.
  • Managers must have business management skills, technical skills, and a thorough knowledge of external relationship management in order to take optimal advantage of opportunities and leverage the skills and knowledge of other organizations to maximize returns on investment.