What is Degree of Operating Leverage?
What is Degree of Operating Leverage?
Degree of Operating leverage is a measure of the company’s ability to use its operating expenses as it needs. The higher this ratio, the more elasticity there will be in response to changes in sales and vice versa. Generally, companies with more fixed costs (costs that don’t change depending on production) relative to variable costs have higher levels of DOL and thus are at risk for rapid…
View On WordPress














