dol meaning in oil and gas

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.…

Definition

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. So the operating leverage * (1 - operating margin) = 1.

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