DOL
Definition
Degree of Operating Leverage
dol means Degree of Operating Leverage. The "operating leverage" is fixed operating expenses as a percentage of revenue: revenue / operating expenses. The operating margin is operating income as a percentage of revenue.…
The "operating leverage" is fixed operating expenses as a percentage of revenue: revenue / operating expenses. The operating margin is operating income as a percentage of revenue. So the operating leverage * (1 - operating margin) = 1.
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