Margin of safety

(redirected from safety margin)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Margin of safety

With respect to working capital management, the difference between (1) the amount of long-term financing and (2) the sum of fixed assets and the permanent component of current assets.

Margin of Safety

In business, the amount by which sales or other revenue can fall before it reaches the breakeven point. That is, the margin of safety is how much worse a company can do before it ceases to be profitable. For example, if a company's breakeven point is $200,000 per year, and it is currently producing $300,000, its margin of safety is $100,000. This is also called the safety margin.
References in periodicals archive ?
When the probability distribution of the inspection safety margin H by Eq (18) is close to the normal distribution, the survival probability of considered particular members may be defined as:
The statistics of additional variables of beam safety margin are: [[theta].
By using the smallest lane width, we obtained the most conservative safety margins.
Casting appearance, quality and feed safety margin were improved, and significant cost savings were realized as casting yield was improved by 11%.
At this stage, a safety margin of 10 percent can be suggested, which means that a placement offset of [+ or -] 40 percent off-pad can be recommended.
Ordinarily, regulatory agencies impose a safety margin when setting guidelines for exposures to toxic substances.
A spokesman said: "There is a massive safety margin with the bridge.
What really counts for a therapy with this kind of safety margin is whether a seriously ill patient feels relief as a result of the intervention, not whether a controlled trial `proves' its efficacy,'' Kassirer writes.
The variations that many foundries have taken for granted not only mean unnecessary scrap but also that a high safety margin must be used in gating and risering systems, resulting in low yield.
Recent in vitro results indicate that coadministration of alovudine and zidovudine increases the safety margin and leads to a synergistic effect against HIV.
But University of Tokyo's Dr Katsufumi Sato said they "would not have a safety margin to fly in bad weather".
The higher operating junction temperature provides an increased safety margin under real-world conditions and a doubling of the safety margin for a true junction temperature of 125 degrees C.