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 ?

Here a safety margin should be considered, depending on some tolerances.

CSP and flip chip assembly using tacky flux: a recent research project found how placement accuracy of CSPs and flip chips is affected by the component pitch and board layout

Even though feeding predictions between the two configurations were similar, the modified design was predicted to have a slightly higher safety margin. Reduced turbulence combined with integral filtration means that application of the modified design would result in improvements in casting quality.

Optimizing casting yield using computer simulation

All in all, the budgetary stance in the programme may not provide a sufficient safety margin against breaching the 3% deficit threshold with normal macroeconomic fluctuations and does not provide for medium-term objective of a budgetary position of close to balance within the programme period.

STABILITY PACT: SLOVENIA MUST GUARD AGAINST OVER-SPENDING

The deserved point from a 1-1 home draw lifted the Seagulls off bottom place, but they are still six points below the safety margin.

Football: Injury cloud over Bay recovery bid

Sufficient safety margin is required in an industrial process to allow for these things, and the SICOR fluid needed to be robustly formulated to cater to these variables.

Cars and the environment: forming lasting bonds. (Innovations)

Funds which were not "ring fenced" were used to clear the deficit, leaving the home without its safety margin of reserves.

Cash crisis for old folk's home; Overspend leaves no safety margins

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.

Optimizing iron quality through artificial intelligence

There is not a large safety margin built into this deployment range.

TPEs in air bag cover applications

This energy capacity gives these devices the ability to provide a greater safety margin, which could increase the chances that therapy will be successful for patients who may need more energy to correct their heart rhythm.

St. Jude Medical gets FDA nod for Unify CRT-D and Fortify ICD

The UK does not provide a sufficient safety margin against breaching the 3% of GDP ceiling, according to the Commission's February 16 assessment of its updated convergence programme.

STABILITY PACT: UK NEEDS A BETTER SAFETY NET

But University of Tokyo's Dr Katsufumi Sato said they "would not have a safety margin to fly in bad weather".

Winged dinosaurs were too big to fly; PREHISTORIC

The revised programme will allow for a correction of the excessive deficit by 2008 if backed by sufficient measures and even then leaves only a small safety margin against breaching the 3% deficit ceiling allowed in the Growth and Stability Pact.