Factor Analysis Aspects of the Enterprise’s Operating Leverage

Abstract

The aim of the research is to selection general coefficient of operating leverage of enterprise and to great factor model of this.

The subject of the research is operating risk of enterprise. Accordingly had study coefficients operating leverage, the fixed and variable costs, the conception of marginal profit and break-even points.

Had mace comparative analysis of well-known coefficients of enterprise operating leverage in the article. Here are discussed relationship between coefficients of Operating Leverage, Marginal Profit, Break-even point, the production Margin of Safety and structure of costs.

Generally accepted methods of analysis are used in the paper, such as analysis and synthesis, induction and deduction, quantitative and qualitative analysis methods, traditional analysis methods.

Results of research had proofed that fixed costs and operating profit ratio can be recognition with General Coefficient of Operating Leverage of enterprise. Had great four-factors model of this indicator too, whose practical use will help the management of enterprises to explore positive and negative factors through the traditional analytical methods and to the adequate decisions will making.