What is Degree of Operating Leverage?
CM / NOI.
How it Works
Division.
Example
Input: 500k / 200k
Result: 2.5
FAQ
Meaning?
1% sales change = 2.5% profit change.
Conclusion
High DOL = High risk/reward.
Sensitivity to sales volume.
Input: 500k / 200k
Result: 2.5
1% sales change = 2.5% profit change.
High DOL = High risk/reward.
This calculator uses formulas and data standards from Standard References to ensure accuracy.
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