Leverage in its most general sense means the ability to magnify results at a relatively low cost. In business, you make decisions about leverage that affect your profitability. When you evaluate ...

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

Return on equity measures net income, or profit, as a percentage of stockholders' equity. A higher ROE means a business generates more profit per dollar of equity. Operating leverage measures how much ...