Leverage in its most general sense means the ability to magnify results at a relatively low cost. In business, you make decisions about leverage that affect your profitability. When you evaluate ...

When analyzing any company, one of its hidden mysteries is operating leverage. Distinct from financial leverage, the “operating” type refers to having a large percentage of fixed expenses. Low ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. David ...

Return on equity measures net income, or profit, as a percentage of stockholders' equity. A higher ROE means a business generates more profit per dollar of equity. Operating leverage measures how much ...