People Come First. Amerigroup focuses on improving health and wellness one member at a time, by doing the right thing for every member every time. We engage and support members and their families to be active participants in their care and to help them make healthy, informed decisions. Read more.
Definition of Leverage. action of a lever; mechanical power supplied by a lever; influence, ability to affect or alter people or circumstances; use of borrowed money to increase the return on an investment. use one's influence to affect people or circumstances; increase the return on an investment by using borrowed money.
Operating leverage is the extent to which a firm uses fixed costs in producing its goods or offering its services. Fixed costs include advertising expenses, administrative costs, equipment and technology, depreciation, and taxes, but not interest on debt, which is part of financial leverage.perating leverage refers to the use of fixed costs in a company's earnings stream to magnify operating profits. Financial leverage, on the other hand, results from the use of debt and preferred stock to increase stockholder earnings.