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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Motorcycle Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 0.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Motorcycle Holdings's Degree of Operating Leverage or its related term are showing as below:
ASX:MTO's Degree of Operating Leverage is ranked better than 52.42% of 1303
companies
in the Vehicles & Parts industry
Industry Median: 0.98
vs ASX:MTO: 0.83
Motorcycle Holdings (ASX:MTO) 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.
Motorcycle Holdings Degree of Operating Leverage Related Terms
Motorcycle Holdings Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Motorcycle Holdings'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.
Motorcycle Holdings Degree of Operating Leverage Chart
ASX:MTO vs CVNA, PAG, ALTB: Degree of Operating Leverage Comparison
For the Auto & Truck Dealerships subindustry, Motorcycle Holdings'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.
Motorcycle Holdings Degree of Operating Leverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcycle Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Motorcycle Holdings's Degree of Operating Leverage falls into.
* 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.
What does a Degree of Operating Leverage of 0.83 mean?
Motorcycle Holdings (ASX:MTO) has a Degree of Operating Leverage of 0.83 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Motorcycle Holdings and its competitors. According to the industry distribution chart, Motorcycle Holdings ranks #620 out of 1303 companies in the Vehicles & Parts industry, placing it in the top 47.6%.
Is Motorcycle Holdings' Degree of Operating Leverage too high?
Motorcycle Holdings' current Degree of Operating Leverage is 0.83. The Vehicles & Parts industry median Degree of Operating Leverage is 0.98. Motorcycle Holdings' value of 0.83 is 15.3% below this industry median. Based on the distribution chart, Motorcycle Holdings ranks #620 out of 1303 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Motorcycle Holdings has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Motorcycle Holdings' Degree of Operating Leverage compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Motorcycle Holdings ranks #620 out of 1303 companies for Degree of Operating Leverage. This puts Motorcycle Holdings in the upper half of its industry. The industry median Degree of Operating Leverage is 0.98. Motorcycle Holdings' value of 0.83 is 15.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Vehicles & Parts company?
The median Degree of Operating Leverage among Vehicles & Parts companies is 0.98, based on 1,303 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorcycle Holdings's current Degree of Operating Leverage of 0.83 is 15.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Motorcycle Holdings and its competitors. For the Vehicles & Parts industry, the median Degree of Operating Leverage is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcycle Holdings's current Degree of Operating Leverage is 0.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorcycle Holdings stock overvalued right now?
Based on GuruFocus' analysis, Motorcycle Holdings (ASX:MTO) is currently considered Modestly Overvalued. The stock's GF Value™ is A$2.66, compared to a current price of A$3.07 — trading 15.4% above its estimated fair value. The current Degree of Operating Leverage is 0.83 and 15.3% below the Vehicles & Parts industry median of 0.98. Motorcycle Holdings' overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Motorcycle Holdings (ASX:MTO), the current Degree of Operating Leverage is 0.83 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Motorcycle Holdings (ASX:MTO) Overvalued in 2026?
Based on GuruFocus' analysis, Motorcycle Holdings stock appears to be overvalued.
The current stock price of A$3.07 is trading 15.4% above its estimated GF Value™ of A$2.66.
GuruFocus considers Motorcycle Holdings to be Modestly Overvalued.
Key valuation signals for ASX:MTO:
Degree of Operating Leverage: 0.83
GF Value™: A$2.66 vs. price of A$3.07 (15.4% above fair value)
Industry Position: 15.3% below the Vehicles & Parts median (#620 of 1303)
No single metric tells the full story. See the ASX:MTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorcycle Holdings Ltd is a motorcycle dealer in Australia. It has two reporting segments. First, Motorcycle Retailing, which offers a range of motorcycle products and services to the general public in Australia, including the sale of new and used motorcycles, parts, servicing, accessories, and MPPs. The segment also facilitates insurance and financing for motorcycle purchases through third-party sources. Second, the Motorcycle and Accessories Wholesaling segment, which imports and distributes a range of motorcycles, ATVs, scooters, and motorcycle parts and accessories to wholesale customers in Australia and New Zealand, including the Group's own retail outlets.
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