Degree of Combined Leverage Calculator

✖The Degree of Operating Leverage is a leverage ratio that summarizes the effect a particular amount of operating leverage has on a company's earnings before interest and taxes over a period of time.ⓘ Degree of Operating Leverage [DOL]			+10% -10%
✖The Degree of Financial Leverage is a metric that measures the sensitivity of a company’s operating income due to changes in its capital structure.ⓘ Degree of Financial Leverage [DFL]			+10% -10%

✖Degree of Combined Leverage represents a company's total risk related to operating leverage, financial leverage, and the net effect on the earnings per share.ⓘ Degree of Combined Leverage [DCL]

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Formula

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Degree of Combined Leverage

Formula

`"DCL" = "DOL"*"DFL"`

Example

`"1.78"="0.89"*"2"`

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Degree of Combined Leverage Solution

STEP 0: Pre-Calculation Summary

Formula Used

Degree of Combined Leverage = Degree of Operating Leverage*Degree of Financial Leverage
DCL = DOL*DFL
This formula uses 3 Variables

Variables Used

Degree of Combined Leverage - Degree of Combined Leverage represents a company's total risk related to operating leverage, financial leverage, and the net effect on the earnings per share.
Degree of Operating Leverage - The Degree of Operating Leverage is a leverage ratio that summarizes the effect a particular amount of operating leverage has on a company's earnings before interest and taxes over a period of time.
Degree of Financial Leverage - The Degree of Financial Leverage is a metric that measures the sensitivity of a company’s operating income due to changes in its capital structure.

STEP 1: Convert Input(s) to Base Unit

Degree of Operating Leverage: 0.89 --> No Conversion Required
Degree of Financial Leverage: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

DCL = DOL*DFL --> 0.89*2

Evaluating ... ...

DCL = 1.78

STEP 3: Convert Result to Output's Unit

1.78 --> No Conversion Required

FINAL ANSWER

1.78 <-- Degree of Combined Leverage

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

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< 4 Leverage Ratios Calculators

Degree of Financial Leverage

Go Degree of Financial Leverage = Earnings Before Interest and Taxes/(Earnings Before Interest and Taxes-Interest)

Degree of Combined Leverage

Go Degree of Combined Leverage = Degree of Operating Leverage*Degree of Financial Leverage

Degree of Operating Leverage

Go Degree of Operating Leverage = % Change in EBIT/% Change in Sales

Financial Leverage

Go Financial Leverage = Total Debt/Total Shareholders' Equity

Degree of Combined Leverage Formula

Degree of Combined Leverage = Degree of Operating Leverage*Degree of Financial Leverage
DCL = DOL*DFL

Degree of Combined Leverage

A degree of combined leverage (DCL) is a leverage ratio that summarizes the combined effect that the degree of operating leverage (DOL) and the degree of financial leverage has on earnings per share (EPS), given a particular change in sales.

How to Calculate Degree of Combined Leverage?

Degree of Combined Leverage calculator uses Degree of Combined Leverage = Degree of Operating Leverage*Degree of Financial Leverage to calculate the Degree of Combined Leverage, The Degree of Combined Leverage formula is defined as a leverage which represents a company's total risk related to operating leverage, financial leverage, and the net effect on the earnings per share. Degree of Combined Leverage is denoted by DCL symbol.

How to calculate Degree of Combined Leverage using this online calculator? To use this online calculator for Degree of Combined Leverage, enter Degree of Operating Leverage (DOL) & Degree of Financial Leverage (DFL) and hit the calculate button. Here is how the Degree of Combined Leverage calculation can be explained with given input values -> 1.78 = 0.89*2.

FAQ

What is Degree of Combined Leverage?

The Degree of Combined Leverage formula is defined as a leverage which represents a company's total risk related to operating leverage, financial leverage, and the net effect on the earnings per share and is represented as DCL = DOL*DFL or Degree of Combined Leverage = Degree of Operating Leverage*Degree of Financial Leverage. The Degree of Operating Leverage is a leverage ratio that summarizes the effect a particular amount of operating leverage has on a company's earnings before interest and taxes over a period of time & The Degree of Financial Leverage is a metric that measures the sensitivity of a company’s operating income due to changes in its capital structure.

How to calculate Degree of Combined Leverage?

The Degree of Combined Leverage formula is defined as a leverage which represents a company's total risk related to operating leverage, financial leverage, and the net effect on the earnings per share is calculated using Degree of Combined Leverage = Degree of Operating Leverage*Degree of Financial Leverage. To calculate Degree of Combined Leverage, you need Degree of Operating Leverage (DOL) & Degree of Financial Leverage (DFL). With our tool, you need to enter the respective value for Degree of Operating Leverage & Degree of Financial Leverage and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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