Margin of safety

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

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 ?
In this representation, one way to maximize the safety margin on the left side of the equation would be to optimize the right side of the equation.
The mean values and standard deviations of additional variables of the safety margin are: [[theta].
Across all environmental conditions, the average safety margin was 2.
Limited DFT testing for 10 J safety margin or abbreviated step-down protocols may be recommended in most patients (15).
The FAA has called for stricter and more uniform pilot calculations to ensure safety margins for landing aircraft on snow-covered or slippery runways, proposing a safety margin of at least 15%.
The guidelines normally involve a considerable safety margin.
The EPA routinely uses highly conservative (and often dubious) assumptions of safety and extrapolations from high-dose animal testing to very low chronic exposures in humans, then applies a safety margin of several orders of magnitude to allow for differences between animals and humans, and for possible enhanced susceptibility of pregnant women and children.
This means that the budgetary stance in the programme may not provide a sufficient safety margin against breaching the 3% deficit threshold with normal macroeconomic fluctuations, particularly in 2005, nor to achieve a budgetary position of close-to-balance within the programme period.
The difference provides a safety margin when reflowing temperature-sensitive components.
2-ppm safety margin could undermine the Lockyer lawsuit.
These, in turn, gave a direct indication of the temperature safety margin of the conductor.