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ALMC (Alimco Financial) Degree of Operating Leverage : 0.00 (As of Jun. 2008)


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What is Alimco Financial Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Alimco Financial does not have enough data to calculate Degree of Operating Leverage.


Alimco Financial Degree of Operating Leverage Historical Data

The historical data trend for Alimco Financial'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.

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Alimco Financial Degree of Operating Leverage Chart

Alimco Financial Annual Data
Trend Mar98 Mar99 Mar00 Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07
Degree of Operating Leverage
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Alimco Financial Quarterly Data
Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
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Competitive Comparison of Alimco Financial's Degree of Operating Leverage

For the Asset Management subindustry, Alimco Financial'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.


Alimco Financial's Degree of Operating Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Alimco Financial's Degree of Operating Leverage distribution charts can be found below:

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


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Alimco Financial Degree of Operating Leverage Calculation

Alimco Financial's Degree of Operating Leverage for the quarter that ended in Jun. 2008 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -2.819 (Jun. 2008) / -6.804 (Jun. 2007) - 1 )/( 0 (Jun. 2008) / 0 (Jun. 2007) - 1 )
=-0.5857/
=N/A***

* 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.


Alimco Financial  (OTCPK:ALMC) 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.


Alimco Financial Degree of Operating Leverage Related Terms

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Alimco Financial Business Description

Traded in Other Exchanges
N/A
Address
3300 South Dixie Highway, Suite 1-365, West Palm Beach, FL, USA, 33405
Alimco Financial Corp is a US-based company that focuses on business financing solutions. it is a diversified, national asset manager and alternative finance company that invests capital opportunistically into small businesses.

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