A Calculation Formula

EIT

DFL

 =

EIT

ITR

EIT

: Earnings Before Interest and Taxes (EBIT)

ITR

: Interest

DFL

: Degree of Financial Leverage

k Degree of Combined Leverage Sub 

mode (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.

A Entering the DCL Sub mode

1. Press B to enter the Break Even Mode.

2. Use fc to select

 DCL:EXE .

3. Press E.

Value Input Screen

A Setting Values

Values Used

No. Display

Name

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

E 88