## Degree of Combined Leverage

A leverage ratio that summarizes the combined effect the degree of operating leverage and the degree of financial leverage has on earnings per share, given a particular change in sales.

This ratio can be used to help determine the most optimal level of financial and operating leverage to use in any firm.

## $$of$$

o = degree of oprating leverage f = degree of financial leverage

ENTER THE VARIABLES TO BE USED IN THE FORMULA