financial leverage, operating leverage
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DOL
% change in EBIT／% change in sales
DFL
% change in EPS / % change in EBIT
DCL
% change in EPS / % change in sales
operating leverage
is defined as the degree to which a firm uses fixed operating costs, as opposed to variable operating costs
financial leverage
is defined as the degree to which a firm's use of debt to finance the firm magnifies the effects of a given percentage change in earnings before interest and taxes (EBIT) on the percentage change in its earnings per share (EPS).
