Page 46 - FINAL CFA SLIDES DECEMBER 2018 DAY 11
P. 46

Session Unit 11:

                                                                                                      37. Measures of Leverage


          LOS 37.b: Calculate and interpret the degree of operating leverage, the degree of financial

          leverage, and the degree of total leverage., p. 67


          The degree of operating leverage (DOL) is defined as the percentage change in operating income

          (EBIT) that results from a given percentage change in sales:





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