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Profit margin
Assessing Profit Margin Sensitivity to Operating Leverage.
December 1, 2023
How does the degree of operating leverage affect a company's profit margin?
The degree of operating leverage influences a company's profit margin by magnifying the impact of sales changes on profits. Higher DOL can lead to wider profit margins with increased sales and narrower margins with decreased sales.
Tags : Operating Leverage , Profit Margin , Financial PerformanceExamining Operating Leverage's Influence on Profitability.
December 1, 2023
How does operating leverage affect a company's profit margin?
Operating leverage affects a company's profit margin by amplifying the impact of sales changes on profits. Higher operating leverage can result in fluctuating profit margins with changes in sales volumes.
Tags : Operating Leverage , Profit Margin , Financial Health