Скачать или смотреть “Operating vs Financial Leverage: The Ultimate Guide to Company Risk

Understanding company risk is not guesswork. It is math, structure, and strategy. This video breaks down Leverage Analysis, the simplest and most powerful tool to decode whether a business is high-risk, stable, or built for smart growth.
Leverage is a magnifier. Small changes in sales can create disproportionately large changes in profit because of fixed costs. By understanding operating and financial leverage, you can classify any company into one of four clear risk profiles.
In this video, we explain:
✔ The two types of leverage
Operating Leverage
Caused by operating fixed costs like rent, salaries, and infrastructure.
Financial Leverage
Caused by interest on debt and borrowing decisions.
You will understand how each type affects profits, growth potential, and the stability of a business.
✔ The four company profiles (with real-world relevance)
High Operating & High Financial (H/H) – The High-Risk Gambler
High Operating & Low Financial (H/L) – The Sensible Operator
Low Operating & Low Financial (L/L) – The Cautious Grower
Low Operating & High Financial (L/H) – The Smart Borrower
Each profile reveals how a company reacts to market changes, how quickly it breaks even, and whether it is safe for investors, lenders, or long-term growth.
✔ Why leverage decisions make or break companies
You will learn how fixed costs amplify both gains and losses, how leverage affects profitability, and why sustainable businesses balance cost structure and borrowing wisely.
Whether you are a business owner, investor, finance student, or someone who wants to understand company fundamentals in the simplest way possible, this video gives you a clear and practical framework to assess risk.
If you'd like a deeper analysis of your company or want a custom risk breakdown, drop a comment below.
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