Definition and Explanation of Operating Leverage: A lever is a tool for multiplying force. Using a lever, a massive object can be moved with only a modest amount of force. In Business, operating leverage serves a similar purpose. Operating leverage is a measure of
Definition of Operating Leverage
Definition of Operating Leverage is a measure of how revenue growth translates into growth in operating income basicaly its how to translate. Leverage, and of how risky a company’s operating income is.