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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

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Operating leverage

Fundamental analysis
Also called: Degree of operating leverage, DOL

The degree to which a company’s profit changes for a given change in revenue, set by its ratio of fixed to variable costs.

In plain terms

The cinema versus the caterer. High fixed costs mean a 10% sales rise can be a 40% profit rise — and a 10% fall can be a warning.

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Indian stock market glossary · Market Vidyalaya