The degree of operating leverage provides a measure of a company's earnings volatility.

Name: The degree of operating leverage provides a measure of a company's earnings volatility.
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The degree of operating leverage (DOL) measures the sensitivity of a company's operating income to changes in its sales revenue. It provides a measure of how much a company's earnings will change for a given change in sales. Therefore, it is an indicator of a company's earnings volatility.

The Degree of Operating Leverage Provides a Measure of a Company's