About

The degree of operating leverage is a financial ratio that measures the change in operating income because of a change in sales. A company with a big proportion of fixed cost to variable cost has a higher level of operating leverage.

If The operating leverage of the company is high, that means a large increment in sales can brings changes in profit. The degree of the operating leverage ratio helps analysts to measure the effect of change in sales on a company's earnings.

The formula for calculating operating leaverage ratio is as follows:

Degree of Operating Leaverage Ratio = Change in EBIT / Change in Sales

What can you do with Degree of Operating Leverage Calculator?

• It helps to calculate degree of operating leaverage and helps to maintain sales and earnings of your company.
• Users can see the accurate value of DOL ratio
• This calculator helps to share your calculations by URL.