Home  Journals  Finance and Credit  23(359) – 2009 June

Production leverage as a business risk indicator in the telecommunications sector

Available online: 16 September 2009

Subject Heading: Strategic analysis

JEL Classification: 

The article is devoted to solving an actual task of developing a new method of assessing the operational leverage based on key efficiency indicators of corporations in the Russian telecommunications sector.
     The article discloses the problems of reducing the commercial risks of the telecommunications sector companies and offers a method of measuring the business risk based on analysis of the operational leverage effect as well as the breakeven chart on the example of one of the largest cellular services operators in Russia. The method offered by the author allows defining the basis for making management decisions in the sphere of costs and sales structure in order to ensure the positive dynamics of the operational profit and reduce the business risk.

Keywords: method, assessment, leverage, profit, risk

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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