ACalculation Formula

DFL =

EIT

EIT ITR

EIT : Earnings Before Interest and Taxes (EBIT)

ITR : Interest

DFL : Degree of Financial Leverage

kDegree of Combined Leverage Submode (Break-Even Mode 5)

The Degree of Combined Leverage (DCL) sub-mode lets you calculate the degree of operating leverage (percent change in profit due to a change in sales amount), with interest taken into consideration.

AEntering the DCL Sub-mode

1. Press Bto enter the Break-Even Mode.

2. Use fc to select “DCL:EXE”.

3. Press E.

Value Input Screen

ASetting Values

No.

Display

Name

Values Used

in Examples

 

 

 

1

SAL

Sales Amount

$1,200,000

 

 

 

 

2

VC

Variable Cost

$600,000

 

 

 

 

3

FC

Fixed Cost

$200,000

 

 

 

 

4

ITR

Interest

$100,000

 

 

 

 

5

DCL

Degree of Combined Leverage

2

 

 

 

 

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