Lambert, Sherwood Lane; Krieger, Kevin; Mauck, Nathan - In: International Journal of Financial Studies : open … 12 (2024) 1, pp. 1-19
We propose a generalized, practitioner-oriented operating-leverage model for predicting operating income using net sales, cost of sales, depreciation, and SG&A. Prior research links operating income directly to these items; hence, our model includes all aggregate revenues and expenses that...