Margin of safety

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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 ?
Therefore, three stochastically dependent safety margins should be considered as follows
By using the smallest lane width, we obtained the most conservative safety margins.
Considering the uncertainties surrounding earthquake safety, it would be ill-advised to rely only on estimated safety margins.
Efficacy and temporal stability of reduced safety margins for ventricular defibrillation: primary results from the Low Energy Safety Study (LESS).
The resulting safety margins are the most restrictive in the world: On the basis of the same available data, most other scientific agencies in the United States and around the world have established much higher minimum exposure levels.
is a leader in the discovery and development of novel small molecule drugs regulating cytochrome P450s to treat skin diseases and cancer with enhanced efficacy and improved safety margins.
By choosing to drive at higher speeds, you greatly reduce your safety margins and in the unfortunate event of a collision, the risks of serious injuries are far greater," he said.
A Government advisory committee found safety margins had been ``significantly eroded'' by the discovery of methomyl - a pesticide used to control caterpillars.
The FQPA calls for pesticide safety margins 10-fold stronger, a 10-year term for review of all registered pesticides and a re-review of the 9,721 pesticide tolerances already established.
As a first step, Toyota and Volkswagen are seeking to jointly develop environmentally friendly exhaust components and brake systems with improved safety margins for new compact cars to be produced in Europe, the Nihon Keizai Shimbun said.