The Degree of Operating Leverage (DOL) measures how a company’s operating income responds to changes in sales. It provides insight into the relationship between fixed and variable costs and their ...

The degree of total leverage equation shows the total leverage of a company. You can find the DTL either by multiplying the degree of operating leverage and degree of financial leverage or by dividing ...

Ben McClure is a seasoned venture finance advisor with 10+ years of experience helping CEOs secure early-stage investments. Gordon Scott has been an active investor and technical analyst or 20+ years.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Return on equity measures net income, or profit, as a percentage of stockholders' equity. A higher ROE means a business generates more profit per dollar of equity. Operating leverage measures how much ...