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The technology sector is more complex, but any flattening of margins will leverage earnings on the downside.
The company's focus has changed over the past six months, from hypergrowth to long-term growth now they're going to leverage earnings and cash flow streams.
Similar(58)
There is no leverage in earnings or profit margins.
There is little leverage to earnings left in the system.
Leverage your earnings by taking out the cost of the initial campaign and reinvesting the rest until you gain a nice momentum and can diversify into a second and third product.
Instead of the leverage ratio, earnings-stripping rules specify an interest coverage ratio.
Analysts hope for earnings leverage from rising sales volume and prices, cost-cutting and financial leverage.
By his reckoning, Deutsche Bank was less fundamentally profitable than its rivals, and relied more on leverage to boost earnings.
In Stage 2, you take your profits from the Stage 1 movers and shift into names that provide less earnings leverage but a smoother, more predictable and diversified earnings stream.
For instance, a big special dividend financed by debt would still leave shareholders with a period of high leverage and potential earnings volatility before they have as much in their pockets as the buyout price.
No near-term earnings leverage expected here.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com