Is there a risk of having both high operating leverage and high finanical leverage?

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Is there a risk of having both high operating leverage and high finanical leverage?

2006-08-04 11:30:28 · 4 answers · asked by dana v 1 in Business & Finance ➔ Other - Business & Finance

4 answers

airlines were infamous for combining both & look what happened (repeatedly)

2006-08-04 12:36:25 · answer #1 · answered by Homer J. Simpson 6 · 0⤊ 0⤋

anytime you are leveraged there is risk involved. One or the other may be more riskier based on your situation but the combination of both would makes things riskier than having a lower leverage exposure.

2006-08-04 18:36:26 · answer #2 · answered by Craig O 2 · 0⤊ 0⤋

your walking the line having any leverage.

2006-08-04 18:40:09 · answer #3 · answered by Jeff2smart 4 · 0⤊ 0⤋

There is a risk walking across the street.

2006-08-04 18:34:51 · answer #4 · answered by The Advocate 4 · 0⤊ 0⤋