degree of operating leverage (DOL)


A type of ratio that uses a large proportion of a company's fixed costs in helping to summarize its earnings before interest and taxes, or EBIT, as it relates to that company's operating leverage.

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The degree of operating leverage was a vital metric we used in analyzing the companies we were considering investing in.

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Sue knew that the degree of operating leverage that her company held was in a very healthy state and she felt good about the direction they were headed.

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The accounting team spent most of the afternoon crunching the numbers to determine our degree of operating leverage, and with those figures we moved ahead with our budget.

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degree of financial leverage (DFL) degree of relative liquidity (DRL)