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OALib Journal期刊
ISSN: 2333-9721
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RISK ANALYSIS USING THE EXPLOATATION LEVERAGE COEFFICIENT AT PASSANGER ROAD TRANSPORTATION COMPANIES

Keywords: breakeven point , degree operating leverage , economic risk , elasticity , risk

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Abstract:

Business activity is usually influenced by the emergence of operational risk, but we should not overlook theimpact that the structure of funding sources can have on the outcome of the enterprise.The purpose of this paper is to show the level of operational risk present at a number of five listed companiesin the passenger road transportation industry. The analysis was based on interpretation of risk level using the resultsobtained by calculating the coefficient of economic leverage for a period of five years; the purpose was to demonstratethat using this tool managers can make decisions in a short time so that decision making process will not be longstanding.

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