to calculate operating leverage:
Leverage = percent change in EBIT / percent change in
leverage definition and explanation:
leverage reflects the extent to which a change in sales
operating leverage ratio, with a highly elastic product
demand, will cause sharp earnings fluctuations.
The operating leverage ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
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The operating leverage ratio is listed in our leverage
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