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 ?
The factor of safety calculated and the maximum sliding depth obtained are shown in Figures 11 and 12, respectively.
The static factor of safety calculated by the proposed method exhibits strong agreement with previous studies.
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.
Liu, "On two definitions of the factor of safety commonly used in the finite element slope stability analysis," Computers and Geotechnics, vol.
The distributions of the minimum factor of safety, [FS.sub.min] for each examined rainfall pattern are indicated in Figure 6 to 9, respectively, for advanced, delayed, central, and uniform rainfall pattern.
The factor of safety for a particular application can be expected to generally be higher.
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.
Consider the two (2) cover systems with the following configuration parameters summarized in Table 1, subjected to the same level of seismic-induced stresses, but originally designed to the same level of factor of safety. By using Eq.
* Choose an appropriate factor of safety for the tests.
The graph shows that the factor of safety decreases with the increase of the pore pressure ratio.
In other words, the factor of safety at a point in a soil mass, defined in (6), will vary with the direction.
The low effective normal forces would reduce the factor of safety of the ground.