Executive & Board / Financial Strategy
Operating Leverage DOL (incremental / flow-through margin)
How much profit amplifies when revenue moves, given a cost base that is partly fixed, the engine of margin expansion at scale.
The fork, why two teams get different numbers
Two related but distinct measures wear the label.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: CFA Institute (operating leverage / DOL) · FASB ASC 220 (income-statement presentation) for the operating-income base