单词 | margin of safety |
释义 | margin of safetyDefinitions 1. Accounting: An excess of a company's actual sales revenue over the breakeven sales revenue, expressed usually as a percentage. The greater this margin, the less sensitive the company to any abrupt fall in revenue. Formula: (Actual sales revenue - Breakeven sales revenue) x 100 ÷ Actual sales revenue. 2. Occupational safety: The maximum amount of exposure to a hazardous substance that produces no measurable ill-effect in test animals, divided by the actual amount of exposure received by the human population. Use 'margin of safety' in a SentenceThere must always be a regional margin of safety for any business that will allow a certain window of decreased profits without harming viability. You must make sure that there is a big margin of safety in your warehouse so that people are not ever in danger. The more volatile an economy or market is, the more important it becomes to look for investments that offer a high margin of safety to protect you from sudden changes in price or demand. |
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