negative leverage

negative leverage

See leverage.
References in periodicals archive ?
Partly offsetting these benefits were weather-related inefficiencies and negative leverage due to lower sales in the restaurant segment.
Using negative leverage means proposing something the other party does not want or taking away something it does want.
When interest rotes are greater than cap rates, the market is in a negative leverage scenario--the more one borrows against a community, the lower the rate of return is on the investment.
In recent years, negative leverage, wherein the cash flow of a building isn't enough to cover its mortgage payments, became commonplace in many real estate acquisitions.
The earnings shortfall was primarily attributable to lower gross margins due to a higher than expected percentage of sales derived from lower margin third party products and higher than expected shipping costs; and negative leverage with higher than expected operating costs off of a lower sales base.
However, cost-savings initiatives helped offset record-high sow costs and negative leverage from lower sales.
When interest rates are greater than cap rates, the market is in a negative leverage scenario the more one borrows against a community, the lower the rate of return is on the investment.
In addition to the impact on earnings from the decline in revenues, gross profit margins were also lower due to the negative leverage impact on indirect costs in both segments.
The Company is revising Q2 earnings guidance due to the decrease in sales and pressure on product margins, as well as negative leverage on occupancy costs and selling, general and administrative expenses.
Labor costs increased as a percentage of restaurant sales partially due to negative leverage associated with year-over-year store-level wage increases during a quarter of same store sales decline, certain state minimum wage increases, as well as the somewhat higher percentage labor costs associated with the significant number of restaurants opened over recent quarters.
The Company is revising Q1 earnings guidance due to the decrease in sales, as well as negative leverage on occupancy costs and selling, general and administrative expenses.
The Company is lowering Q2 earnings guidance due to the decrease in sales, product margin pressure resulting from a more promotional environment, as well as negative leverage on occupancy costs and selling, general and administrative expenses ("SG&A").