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Topics: Leverage Formula

Degree of Operating Leverage Formula

Degree of Operating Leverage Formula

Subject: Accounting
Degree of operating leverage is a measure of the extent of operating leverage i.e. the relationship between operating income and sales of a business. If operating income is more sensitive to changes in sales, the…
What is Degree of Operating Leverage

What is Degree of Operating Leverage

Subject: Accounting
Definition Degree Of Operating Leverage (DOL) is type of leverage ratio summarizing the effect a particular amount of operating leverage has on a company’s earnings before interest and taxes (EBIT). Operating leverage involves using a large…

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