How to Calculate Degree of Operating Leverage

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Degree Of Operating Leverage (DOL) Definition | Investopedia More
Published: 9 years, 4 month(s) ago by Ron Mac Knight | permalink
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A 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 proportion of fixed costs to variable costs in the operations of the firm.
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For further reading: http://www.investopedia.com/terms/d/degreeofoperatingleverage.asp ^[1]