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 ?
For verification of the proposed solution, the factor of safety predicted by the proposed limit analysis was compared with the results obtained by using different computational approaches.
Intentionally designing to a factor of safety much greater than 1 indirectly admits the fault in the deterministic approach while bypassing more meaningful and less arbitrary alternatives.
In term of deterministic analysis, a slope is likely to fail if the factor of safety is equal or less than one (FS [less than or equal to] 1).
We can notice from the design that the factor of safety considered for the design is too large which results in the wastage of the material and also increases its cost.
1) through (7), the time-dependent magnitude of factor of safety for the two scenarios immediately and long-term after earthquake occurrence is computed and presented in Figure 1.
Choose an appropriate factor of safety for the tests.
In addition, according to the example slope model, five-group factors of safety with different c and tan f values under the same coefficient of variation are given in Table 5 to further investigate the variation characteristics of the probability of failure with the factor of safety under different copulas.
No specic value of factor of safety is recommended as safe, however, for soil having factor of safety less than 1 are highly susceptible to liquefaction and susceptibility for liquefaction varies inversely with factor of safety.
The current version of the simplified procedure calculates the factor of safety FS against liquefaction of a level ground in terms of the cyclic stress ratio CSR (the demand), and the cyclic resistance ratio CRR (the capacity) according to:
For purposes of analysis, Rudakov and Pursell decided that 500 million cycles--a dozen or more years worth of heartbeats--was an infinite life in determining the factor of safety against fatigue failure.
Document identifier: KIT 206 Descriptors: Buildings, Structural design, Structural systems, Concretes, Structures, Design, Reinforced concrete, Prestressed concrete, Factor of safety, Durability, Design calculations, Prestressing steels, Structural members, Fire resistance, Construction materials, Safety measures, Approval testing, Serviceability limits, Tendons, Reinforcement, Lightweight aggregates, Aggregates ISBN: 978 0 580 50985 8 Material number: 30232841