what is the degree of combined leverage dcl 
a degree of combined leverage dcl is a leverage ratio that summarizes the combined effect that the degree of operating leverage dol and the degree of financial leverage has on earnings per share eps given a particular change in sales this ratio can be used to help determine the most optimal level of financial and operating leverage to use in any firm the formula for the degree of combined leverage is d c l c h a n g e i n e p s c h a n g e i n s a l e s d o l x d f l where d o l degree of operating leverage d f l degree of financial leverage begin aligned dcl frac change in eps change in sales dol text x dfl textbf where dol text degree of operating leverage dfl text degree of financial leverage end aligned dcl change in sales change in eps dol x dflwhere dol degree of operating leveragedfl degree of financial leverage 