Alcoa (AAPRB.PFD) Degree of Operating Leverage : 0.00 (As of Sep. 2016)

View and export this data going back to 2014. Start your Free Trial

What is Alcoa Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Alcoa's Degree of Operating Leverage for the quarter that ended in Sep. 2016 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Alcoa's Degree of Operating Leverage or its related term are showing as below:

AAPRB.PFD's Degree of Operating Leverage is not ranked ^*
in the Metals & Mining industry.
Industry Median: 0.955
* Ranked among companies with meaningful Degree of Operating Leverage only.

Alcoa Degree of Operating Leverage Historical Data

The historical data trend for Alcoa's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Alcoa Degree of Operating Leverage Chart

Alcoa Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Degree of Operating Leverage

Get a 7-Day Free Trial

Alcoa Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Degree of Operating Leverage	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Alcoa's Degree of Operating Leverage

For the Aluminum subindustry, Alcoa's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Alcoa's Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Alcoa's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Alcoa's Degree of Operating Leverage falls into.

Save Embed

;

Save Embed

;

Alcoa Degree of Operating Leverage Calculation

Alcoa's Degree of Operating Leverage for the quarter that ended in Sep. 2016 is calculated as:

Degree of Operating Leverage	=	% Change in EBIT^**	/	% Change in Revenue
	=	( 501 (Sep. 2016) / 1694 (Sep. 2015) - 1 )	/	( 20700 (Sep. 2016) / 23666 (Sep. 2015) - 1 )
	=	-0.7043	/	-0.1253
	=	5.62^***

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Alcoa (NYSE:AAPRB.PFD) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.

Alcoa Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Alcoa's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Alcoa Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alcoa Inc (NYSE:AAPRB.PFD) » Definitions » Degree of Operating Leverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

https://www.arconic.com

Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.