Degree of Combined Leverage (DCL) Calculator

Calculate DCL = DOL x DFL = % Change in EPS / % Change in Revenue. Combines operating and financial leverage to show total EPS sensitivity to revenue changes.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Calculate DCL = DOL x DFL = % Change in EPS / % Change in Revenue. Combines operating and financial leverage to show total EPS sensitivity to revenue changes

Each component has a specific meaning:

  • Operating — The operating recorded for the scenario being assessed.
  • Financial leverage — The financial leverage recorded for the scenario being assessed.

Note: Interpret the combined leverage dcl result against the thresholds and context described above.

How to Use

Enter the operating, financial leverage for the scenario you are assessing. Calculate DCL = DOL x DFL = % Change in EPS / % Change in Revenue. Combines operating and financial leverage to show total EPS sensitivity to revenue changes. Use the combined leverage dcl result to inform your calculation.

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Operating Leverage DOL

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Financial Leverage DFL

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Frequently Asked Questions