Predicting Operating Income via a Generalized Operating-Leverage Model
Gespeichert in:
| Veröffentlicht in: | International Journal of Financial Studies vol. 12, no. 1 (2024), p. 11 |
|---|---|
| 1. Verfasser: | |
| Weitere Verfasser: | , |
| Veröffentlicht: |
MDPI AG
|
| Schlagworte: | |
| Online-Zugang: | Citation/Abstract Full Text + Graphics Full Text - PDF |
| Tags: |
Keine Tags, Fügen Sie das erste Tag hinzu!
|
MARC
| LEADER | 00000nab a2200000uu 4500 | ||
|---|---|---|---|
| 001 | 3003034686 | ||
| 003 | UK-CbPIL | ||
| 022 | |a 2227-7072 | ||
| 024 | 7 | |a 10.3390/ijfs12010011 |2 doi | |
| 035 | |a 3003034686 | ||
| 045 | 2 | |b d20240101 |b d20241231 | |
| 084 | |a 231471 |2 nlm | ||
| 100 | 1 | |a Sherwood Lane Lambert |u College of Business, University of West Florida, Pensacola, FL 32514, USA; <email>llambert@uwf.edu</email> (S.L.L.); <email>kkrieger1@uwf.edu</email> (K.K.) | |
| 245 | 1 | |a Predicting Operating Income via a Generalized Operating-Leverage Model | |
| 260 | |b MDPI AG |c 2024 | ||
| 513 | |a Journal Article | ||
| 520 | 3 | |a We propose a generalized, practitioner-oriented operating-leverage model for predicting operating income using net sales, cost of sales, depreciation, and SG&A. Prior research links operating income directly to these items; hence, our model includes all aggregate revenues and expenses that comprise operating income. Prior research finds that the cost of sales is “much less” sticky than depreciation and SG&A; hence, we use the cost of sales as a proxy for the total variable costs and depreciation and SG&A as proxies for the sticky fixed costs. We introduce a new adjustment to the textbook operating-leverage model so that the ratio of sales to the cost of sales remains constant for the reference and forecast periods. Inspired by prior research, we adjust depreciation and SG&A for cost stickiness. We find that using our generalized operating-leverage model improves the forecast accuracy of next-quarter and next-year operating income predictions compared to predictions made using textbook operating leverage, which is a special case of our model. | |
| 653 | |a GAAP | ||
| 653 | |a Financial statements | ||
| 653 | |a Administrative expenses | ||
| 653 | |a Textbooks | ||
| 653 | |a Sales | ||
| 653 | |a Costs | ||
| 653 | |a Operating leverage | ||
| 653 | |a Income taxes | ||
| 653 | |a Profits | ||
| 653 | |a Accounting | ||
| 653 | |a Profitability | ||
| 653 | |a Return on equity | ||
| 700 | 1 | |a Krieger, Kevin |u College of Business, University of West Florida, Pensacola, FL 32514, USA; <email>llambert@uwf.edu</email> (S.L.L.); <email>kkrieger1@uwf.edu</email> (K.K.) | |
| 700 | 1 | |a Mauck, Nathan |u Henry W. Bloch School of Management, University of Missouri-Kansas City, Kansas, MO 64108, USA | |
| 773 | 0 | |t International Journal of Financial Studies |g vol. 12, no. 1 (2024), p. 11 | |
| 786 | 0 | |d ProQuest |t ABI/INFORM Global | |
| 856 | 4 | 1 | |3 Citation/Abstract |u https://www.proquest.com/docview/3003034686/abstract/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch |
| 856 | 4 | 0 | |3 Full Text + Graphics |u https://www.proquest.com/docview/3003034686/fulltextwithgraphics/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch |
| 856 | 4 | 0 | |3 Full Text - PDF |u https://www.proquest.com/docview/3003034686/fulltextPDF/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch |