Page 49 - FINAL CFA SLIDES DECEMBER 2018 DAY 11
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Session Unit 11:

                                                                                                      37. Measures of Leverage



           The degree of total leverage (DTL) combines the degree of operating leverage and financial
           leverage; it measures the sensitivity of EPS to change in sales. DTL is computed as (p.70):












                                                         tanties











          Note that we also could have calculated the DTL the long way. From the previous example, the current
          value of Atom’s dollar sales is $4 × 100,000 = $400,000.
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