"Operating leverage is just another bit of lingo that corporate puts out to confuse and confound the analyst lackeys and the people who follow this stuff. Just the type of stuff Warren Buffett and others like him always warn about avoiding. The biggest fallacy though is in the theory of earnings as it is. Once again the masses pay no attention to cash flow, just plain vanilla earnings which are always manipulated heavily when you let them pass off lingo like operating leverage."


this is really good stuff man. any thoughts on what might improve the situation. one big reason i think that the bottom line is so hard to judge is govt tax treatment of corps. another is that public companies are wall st. lackeys. these 2 make it hard to get true picture as to bottom line.