Operating leverage, in simple terms, is the relationship between fixed and variable costs. Fixed costs are costs that are incurred regardless of the number of units sold. Variable costs change with ...

Operating leverage is the fraction of a company's costs that are fixed. Firms with a lower fraction of variable costs and a higher fraction of fixed costs have a higher operating leverage, which means ...

Given the frequent reference to operating leverage during discussions of banks' financial performance, it's natural to assume that there is some common definition. Only there isn't. With the ...