Corp: DOL

better

is it lower the better? Thanks.

Pegasus2008

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2^#

发表于 2011-7-13 16:52 | 只看该作者

lower DOL -> lower risk -> lower potential return

so define "better" first..

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DSquaredSlim

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3^#

发表于 2011-7-13 16:52 | 只看该作者

yes, the lower the better

the lower DOL, the less volatile EBIT to the change of sales.

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troymo

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发表于 2011-7-13 16:53 | 只看该作者

agree it all depends...if my DOL is 2.5 and my WACC is 8% while company B's DOL is only 1.5 but their WACC is 12%, i am better off despite having higher leverage

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