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ADNT (Adient) Degree of Operating Leverage : 14.97 (As of Mar. 2025)


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What is Adient Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Adient's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 14.97. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ADNT's Degree of Operating Leverage is ranked worse than
89.3% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1 vs ADNT: 14.97

Adient Degree of Operating Leverage Historical Data

The historical data trend for Adient'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.

Adient Degree of Operating Leverage Chart

Adient Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.66 -112.37 -26.39 10.30 7.32

Adient Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.26 11.60 7.32 7.10 14.97

Competitive Comparison of Adient's Degree of Operating Leverage

For the Auto Parts subindustry, Adient'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.


Adient's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Adient's Degree of Operating Leverage distribution charts can be found below:

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


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Adient Degree of Operating Leverage Calculation

Adient's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 83 (Mar. 2025) / 411 (Mar. 2024) - 1 )/( 14384 (Mar. 2025) / 15194 (Mar. 2024) - 1 )
=-0.7981/-0.0533
=14.97***

* 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.

** 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.


Adient  (NYSE:ADNT) 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.


Adient Degree of Operating Leverage Related Terms

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


Adient Business Description

Traded in Other Exchanges
Address
3 Dublin Landings, North Wall Quay, IFSC, Dublin 1, Dublin, IRL, D01 H104
Adient began trading Oct. 31, 2016, when Johnson Controls spun off its automotive experience segment. Adient is the leading seating supplier to the industry with about one third of the global market. Its share in China is now nearly 20%, down from about 45%, following the sale of its main joint venture there at the end of fiscal 2021. Unconsolidated revenue from joint ventures was about $3.8 billion in fiscal 2024 and consolidated China revenue was $1.4 billion. The company is headquartered in Ireland but has corporate offices in the Detroit area. Fiscal 2024 (Sept. 30 year-end) consolidated revenue, which excludes joint venture sales, was $14.7 billion but will likely be below $14 billion in fiscal 2025 on tariff interruptions and divesting some lower-quality business.
Executives
James Conklin officer: EVP, Americas ADIENT, 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Gregory Scott Smith officer: VP & Chief Accounting Officer 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Peter Carlin director 101 JFK PARKWAY, SHORT HILLS NJ 07078
Berthelin Michel Pierre Rose officer: VP, Seating EMEA 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Heather M Tiltmann officer: SVP, Gen. Counsel & Secretary 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Jerome J. Dorlack officer: VP, Seating Americas 5725 DELPHI DRIVE, TROY MI 48098
Jodi Euerle Eddy director C/O BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752
Douglas G Delgrosso director, officer: CEO and President
Jeffrey Stafeil officer: EVP and CFO 1707 PADDINGTON CIRCLE, KESWICK VA 22947
Ricky T Dillon director ONE SOUTH WACKER DRIVE, SUITE 1000, CHICAGO IL 60606
Jian James Huang officer: Vice President, APAC 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Jose M Gutierrez director 175 E HOUSTON ST. ROOM 216, SAN ANTONIO TX 78205
Frederick A. Henderson director SUNCOKE ENERGY, INC., 1011 WARRENVILLE ROAD, SUITE 600, LISLE IL 60532
Cathleen A Ebacher officer: VP, GC and Secretary 833 E MICHIGAN STREET, SUITE 1100, MILWAUKEE WI 53202
R Bruce Mcdonald director, officer: Chairman and CEO ADIENT PLC, 833 E. MICHIGAN STREET, SUITE 1100, MILWAUKEE WI 53202