Understanding Operational Gearing | Management and Financial Accounts | UK Business

Operational gearing is an important tool for business owners and entrepreneurs. It's a measure of how much profits are being generated by the company's day-to-day operations, as opposed to its investments. In other words, it can tell you how lean your business is running. Although it might seem like a complex concept, operational gearing is actually quite simple to understand. Watch to learn more! FREE online calculator for working out operational gearing https://numbersknowhow.co.uk/operatio... 00:00 Introduction to operational gearing 00:56 What is operational gearing 01:17 Explaining what fixed costs are 02:13 Explaining what variable costs are 03:04 High and low operational gearing 03:33 Why it's important to understand operational gearing 04:04 The impact of costs on profits 05:17 FREE online calculator for working out operational gearing 05:50 Decision making and operational gearing