Degree of Operating Leverage (Managerial Accounting)

This video explains what the Degree of Operating Leverage is in the context of managerial accounting. The formula for calculating the Degree of Operating Leverage is provided and an example is used to illustrate how the Degree of Operating Leverage can be used to predict how a change in sales will affect a firm's profitability.
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[@lifecoaching_lk2482]

Your videos are absolutely fantastic! Love you for that and also found some fun in accounting

[@Edspira]

Excellent! Happy to hear that you are enjoying the videos. I have an entire course on my website for free, which included PowerPoints, Exercises, and Videos. It's a little easier to navigate than RUclips.
www.edspira.com/index-managerial-accounting/
Wishing you the best!

[@zhuawamao]

What I learned from your videos more than what I learned in my 3 months class... I should have found this earlier so I could have a better score on my previous exam. Much appreciated!

[@Edspira]

Thanks for the compliment Cher. I have whole courses of managerial accounting if you are interested in further study: www.edspira.com/courses/managerial-accounting (I don't make any money off of the website. Everything is free.) Best of luck in your class!

[@zhuawamao]

Edspira Yup I have found that website. It's very useful! Thanks a bunch!

[@The_Annihilater]

Doing what my lecturers can’t 😭 what a legend man!

[@Edspira]

🙏

[@taricov4662]

What I want to say that I really really appreciate your simplicity in explaining .. thank you .. just want to indicate - in this video - that DOL is mainly affected by Fixed cost .. Higher fixed cost , sharper changing in the profitability ( in case of changing in sales volume for a particular firm )
this may be an additional explanation of how DOL behave .. and DoL refers to the importance of reducing FC .
I hope this little helpful beside the origin video .

[@Edspira]

Thank you!

[@someoneanonymous978]

This is why I'm subscribed! You explain everything in a way that's easier to understand than the textbook explanations. You're videos have helped me many times in different classes. Thank you so much!

[@Edspira]

Thank you for the kind words! I'm glad you found the videos helpful :)

[@luzchanj]

I was drowning in confusion, and now I am SAVED!!!!! Very solid explanation Sir!

[@mahfuzkabir7812]

This video is super underrated. Great explanation!

[@adil4307]

Thank u sir. what a Phenomenal explanation

[@TheSilentWalkerz]

Cheers mate, it really helped. I didn't get what was the point of DOL until this video.

[@okayrepublic2955]

Thank you so much, you actually made accounting understandable and fun for me! You truly have a gift for teaching.

[@louphou]

this was so helpful, thank you so much!!🎉

[@Edspira]

You're so welcome!

[@yuniorgalardy2781]

Great Video. Thank you. Please keep posting your videos.

[@Edspira]

Thank you, I will absolutely do so my friend!

[@TheWaveism]

Brilliantly explained. Thanks!!!

[@Edspira]

Thanks Scott!

[@imadhification]

Thank you very much sir.

[@Edspira]

No problem!

[@ishansrivastav1420]

Thankyou for the video. I just had a doubt.
Could you please explain why are we not increasing the ratio by 10% and instead are multiplying by 10. basically, why are we multiplying by 10 ?

[@soumyavarma6924]

Thank you so so so much!!!

[@yinyinyinyin520520]

Sir, could you please make a video about degree of financial leverage as a comparison? Much appreciated!

[@TruePromise]

thank you this help me to much in Bec Cpa

[@Edspira]

No problem! I hope you pass the CPA :)

[@mayeicker285]

Does the same work for an expected decrease of revenue? Have my finance exam tomorrow.

[@ahmadtt1]

Thank you, great explanation

[@Edspira]

No problem!

[@marcelaonofre8412]

Love you ❤😂

[@sychelledemi8468]

Is the DOL also called CM ratio % ?

[@Edspira]

No, those are different

[@jiyoungyun7494]

thank you! this is a great video

[@Kaysar777]

So, is it gross profit / net profit ?

[@TimeManInJail]

lol i bought the textbook, try reading it and this 5 minute does it better

[@diliniperera2546]

Thank you

[@ajitvikrambhargava8824]

isnt it written upside down.1 percent change in sales leads to how much changein operating income isnt that dol?
changes in sales leading to percent change in net income is DTL?

[@jarizminrivera5999]

Thank you! :)

[@Edspira]

+Jarizmín Rivera No problem! Best wishes

[@remixxx432]

Sometimes I wonder why my teachers fail to deliver the information as simply as you do, I feel like I wasted 4 months of my life going to class smh.

[@Truthwillprevail1477]

Learned DOL in less than 5mins(had it speed up to 1.5x) compare to me reading the book.

[@bogao6712]

Sorry, the wording on the multiplier was very confusing.

[@maximjj9195]

I love you

[@ahmadtt1]

could you explain degree of financial leverage

[@andymcmeekin2532]

Great video! Do you make any money off of these RUclips videos?