Examlex
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Financial Risk
The possibility of losing money on an investment or business venture, including market risk, credit risk, liquidity risk, and operational risk.
Variable Cost Ratio
This is a financial metric that represents the variable costs incurred as a percentage of sales, showing how much of each sales dollar is eaten by variable costs.
Degree of Total Leverage
The degree of total leverage measures the sensitivity of a company's net income to a change in sales, combining both operating and financial leverage effects.
Fixed Operating Costs
Expenses that remain constant regardless of the amount of output or sales, including rent, wages, and insurance premiums.
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