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ALLE (Allegion) Degree of Operating Leverage : 2.81 (As of Mar. 2025)


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What is Allegion Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Allegion's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ALLE's Degree of Operating Leverage is ranked worse than
67.75% of 1014 companies
in the Business Services industry
Industry Median: 1.05 vs ALLE: 2.81

Allegion Degree of Operating Leverage Historical Data

The historical data trend for Allegion'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.

Allegion Degree of Operating Leverage Chart

Allegion Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.60 6.98 0.20 1.75 3.83

Allegion 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 2.60 5.36 2.72 3.83 2.81

Competitive Comparison of Allegion's Degree of Operating Leverage

For the Security & Protection Services subindustry, Allegion'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.


Allegion's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Allegion's Degree of Operating Leverage distribution charts can be found below:

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


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Allegion Degree of Operating Leverage Calculation

Allegion'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
=( 824.9 (Mar. 2025) / 714.8 (Mar. 2024) - 1 )/( 3820.2 (Mar. 2025) / 3621.7 (Mar. 2024) - 1 )
=0.154/0.0548
=2.81***

* 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.


Allegion  (NYSE:ALLE) 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.


Allegion Degree of Operating Leverage Related Terms

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


Allegion Business Description

Traded in Other Exchanges
Address
Harcourt Road, Iveagh Court, Block D, Dublin 2, Dublin, IRL, D02 VH94
Allegion is a global security products company with a portfolio of leading brands such as Schlage, Von Duprin, and LCN. The Ireland-domiciled company was created via a spinoff transaction from Ingersoll-Rand in December 2013. In fiscal 2024, Allegion generated over 75% of sales in the United States. The company primarily competes with Sweden-based Assa Abloy, Switzerland-based Dormakaba, and US-based Fortune Brands Innovations.
Executives
Tracy L Kemp officer: Sr. Vice President C/O SCHLAGE LOCK COMPANY LLC, 11819 N PENNSYLVANIA ST, CARMEL IN 46032
Jeffrey N Braun officer: SVP & General Counsel C/O SCHLAGE LOCK COMPANY LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
David S. Ilardi officer: SVP - Allegion Americas C/O SCHLAGE LOCK COMPANY LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
Nickolas A. Musial officer: VP, Controller & CAO C/O SCHLAGE LOCK COMPANY LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
John H Stone director, officer: President and CEO C/O SCHLAGE LOCK COMPANY LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
Timothy P Eckersley officer: Sr. VP-Allegion International C/O SCHLAGE LOCK COMPANY, LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
Robert C. Martens officer: SVP Chief Innovation & Design C/O SCHLAGE LOCK COMPANY LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
Steven Mizell director 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Sue Main director TELEDYNE TECHNOLOGIES INCORPORATED, 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360
Jennifer L Preczewski officer: VP ? Chief HR Officer C/O SCHLAGE LOCK COMPANY LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
Ellen Rubin director 11 CLEMENTS ROAD, NEWTON MA 02458
Michael J. Wagnes officer: Sr. VP & CFO C/O SCHLAGE LOCK COMPANY LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
David D Petratis officer: President & CEO 1415 ROSELLE ROAD, PALATINE IL 60067
Douglas P Ranck officer: V. President/Controller C/O SCHLAGE LOCK COMPANY, LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032
Patrick S Shannon director, officer: Sr. V. President & CFO C/O SCHLAGE LOCK COMPANY, LLC, 11819 N. PENNSYLVANIA STREET, CARMEL IN 46032