Assertion: firm | /r/HasAspect | high operating leverage
Facets:
Source sentences:
text: Stated another way, operating leverage is the ratio of fixed costs to variable costs; if a business firm has more fixed costs as compared to variable costs, then the firm is said to have high operating leverage.
text: If a firm has high operating leverage, a small change in sales volume results in a large change in return on invested capital (ROIC).