Financial leverage // Economy

in Project HOPElast month


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Greetings colleague continuing with the theme of Economics, but in the framework of financial administration in reference to knowing everyone, as an entrepreneur, projects, investments, strategies, of course the knowledge about this context, since in an informative and educational, strengthens us as people, leaders and future entrepreneurs, well, the unique thing about the case, my friend, is the following when it comes to leverage, it focuses on the relationship between credit and equity invested in a financial operation, with the aim of increasing credit , higher leverage and lower equity investment, is a type of using debt to finance an operation, in order to seek profitability and the rotation of capital assets, also the other form of leverage in which you must know based on our cost structure and tracking of capital assets when it comes to operating leverage, because it refers to the tools As the company uses to produce and sell, everything has a meaning to respond to our strategies, where there will be a more than proportional change in profit, either for better or for worse such as: profit or loss in operations. I start from an economic philosophy that in order to generate more profit, it must be done in the medium and long term to apply this strategy to stimulate the rotation of capital assets either by inventory rotation and less by reinvestment because this second option does not generate much benefit on our capital, the question is to be aware that the leverage strategy consists of the use of funds from outside the company to allocate it to investments, in capital assets and relationship with other types of financial instruments are used for the purpose set up, where the interest payable is less than the income received.


can be applied to acquire assets, plant and equipment varied in capital assets, but the most interesting when two companies work to compare, expand their markets and products and services, but that is the most that you should know to use This strategy must always know our ability to pay in the negative case, the interest rate according to long-term and mid-term, especially as is the behavior of inflation levels if it affects very seriously in the country where it is carried out to assume the risk . In real estate companies, they usually see this type of strategy, also trust, purchase of an owner, shares placed in the general public, insurance brokers also enter this field, everything is a way to move capital assets to double or have a good Profitability, let's just think about so many options, it is only necessary to leave a guarantee of the total invested, so the operation can also be leveraged with the sense that it has to do with financial options, since we buy a right on an underlying asset, so to speak In this way. We always establish a strategy that meets the objective in the long and medium term but we can fulfill not only use your budget, we must project our profitability according to where you want to invest and see your risk level, this formula must be clear, friend reader, the contribution margin (MC ), equals the difference between total sales and total variable costs.


It is good to see another form of financial management and the field of Economics, which allows us to be good investors, entrepreneurs and leaders of stimulus for great goals, we see a next installment, knowledge is for everyone.


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Hello @newton666
It has taken me some time to understand what leverage is, in exchanges it is something very used, at least in the cryptographic world it implies to increase the possibilities of winning but also of losing, but, it is necessary to do good risk management to be able to obtain good benefits.

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