Related Words

Operating Leverage: Fixed operating costs, which are characterized as leverage because they accentuate variations in profits.

Operating Risk: The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk.

Operating Cycle: The average time between the acquisition of materials or services and the final cash realization from that acquisition.

Operating Cash Flow: Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements.

Operating Expenses: Those recurring expenses that are essential to the continuous operation and maintenance of a property. Operating expenses are generally divided into the following categories: fixed expenses . . . View Full Definition

Operating Exposure: Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.

Operating Income: Sales revenue minus cost of sales and operating expenses. Similar to earnings before interest and taxes, operating income is examined when the earnings of the core business are analyzed. Als . . . View Full Definition

Operating In The Red: Doing business while losing money.

Operating Budget: A projection of income and expenses for the operation of a property over a one year period.

Operating Assets: Long-term, or noncurrent, assets acquired for use in the business rather than for resale: includes property, plant, and equipment: intangible assets: and natural resources.