What Is the Institutional Brokers’ Estimate System (IBES)?

The Institutional Brokers’ Estimate System (IBES) is a service that provides earnings estimates for companies from a variety of brokerages and investment banks. These estimates are used by investors to make informed decisions about whether to buy, hold, or sell a particular stock. IBES was created in 1978 by a consortium of investment banks and … Read more

Understanding the Degree of Operating Leverage.

Operating leverage is a ratio that measures the percentage change in operating income to the percentage change in sales. The higher the operating leverage, the more sensitive operating income is to changes in sales. There are two types of operating leverage: financial leverage and operating leverage. Financial leverage is the use of debt to finance … Read more