Luisa Lui There are thousands of videos in our online courses. We do share a good number here, but we're never going to publicly post everything or more than ~10% or so of what is available to our customers. We generally upload 2-3 new lessons per month.
It just means the company's operating income will fall proportionally more than revenue when there's a decrease in revenue. This is generally seen as a negative, but, again, it depends on the business model and company.
@@doannguyenduc5664 It is mentioned briefly on one of the slides here, but we don't use it in the Excel file or recommend using it, as it makes less sense than the others. I don't recall exactly where we found this reference because this video is from ~8 years ago, but a book or textbook must have included it somewhere. But I would not worry about this at all since it's not used much, if at all, in real life.
I want to ask that if the company revenue grow to estimately 59% It is possible the company profit going grow to? And it true that the company percentage of operating income going lower that the % of sale if the company have a lower operating leverage?
It's impossible to say without more information. What are the company's current margins? What is its cost structure? What is its industry and maturity stage? Just knowing the revenue growth is not enough. Lower operating margins don't necessarily mean lower operating leverage... you need to look at the breakout between fixed and variable costs.
Maybe by reducing its fixed or variable costs, changing the ratio of those costs, getting rid of lower-performing groups or divisions, or something else like that. There could be dozens of reasons.
Thank you for this great tutorial !
Thanks for watching!
Really appreciate if you could upload more video!
Luisa Lui There are thousands of videos in our online courses. We do share a good number here, but we're never going to publicly post everything or more than ~10% or so of what is available to our customers. We generally upload 2-3 new lessons per month.
Thank you for the great help 👍🏼
Thanks for watching!
great video totally learned much thanks
Sunflower47 Thanks for watching!
Great video! Cheers
Thanks for watching!
Very useful. Great.
Thank you for the great video!! But what is the interpretation if we get a negative operating leverage?
It just means the company's operating income will fall proportionally more than revenue when there's a decrease in revenue. This is generally seen as a negative, but, again, it depends on the business model and company.
I saw the formula Net Income/Fixed Costs to get the DOL. I couldn't find this formula anywhere else. Could you please explain it to me?
Sorry, I'm not sure about that one. I would net to see an example to say anything useful - as we don't normally define Operating Leverage like that.
Sir, I saw that formula in this video.
@@doannguyenduc5664 It is mentioned briefly on one of the slides here, but we don't use it in the Excel file or recommend using it, as it makes less sense than the others. I don't recall exactly where we found this reference because this video is from ~8 years ago, but a book or textbook must have included it somewhere. But I would not worry about this at all since it's not used much, if at all, in real life.
Thank you so much!
Thanks
Thanks for watching!
I want to ask that if the company revenue grow to estimately 59%
It is possible the company profit going grow to? And it true that the company percentage of operating income going lower that the % of sale if the company have a lower operating leverage?
It's impossible to say without more information. What are the company's current margins? What is its cost structure? What is its industry and maturity stage? Just knowing the revenue growth is not enough. Lower operating margins don't necessarily mean lower operating leverage... you need to look at the breakout between fixed and variable costs.
really useful video.thanks for sharing.
Thanks for watching!
And also how to describe a lower operating leverage company managed to increase its income so much with a 50% increase in sales?
Maybe by reducing its fixed or variable costs, changing the ratio of those costs, getting rid of lower-performing groups or divisions, or something else like that. There could be dozens of reasons.