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Dictionary by pitch.dog
Margins, break-even & unit economics · Working

Operating leverage

Also called: operational leverage

ELI5

Sensitivity of operating profit to revenue change because of the cost structure.

Used in conversation

“How are we defining operating leverage in this deck?”

Pitch context

You will see “Operating leverage” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 9

Direct term-level sources and supporting source families.