How to Calculate Degree of Operating Leverage?
Degree of Operating Leverage calculator uses degree_of_operating_leverage = % Change in EBIT/% Change in Sales to calculate the Degree of Operating Leverage (DOL), The degree of operating leverage (DOL) is a leverage ratio that summarizes the effect a particular amount of operating leverage has on a company's earnings before interest and taxes (EBIT) over a period of time. Degree of Operating Leverage (DOL) and is denoted by DOL symbol.
How to calculate Degree of Operating Leverage using this online calculator? To use this online calculator for Degree of Operating Leverage, enter % Change in EBIT (% Change in EBIT) and % Change in Sales (% Change in Sales) and hit the calculate button. Here is how the Degree of Operating Leverage calculation can be explained with given input values -> 1.733333 = 78/45.