GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » American Axle & Mfg Holdings Inc (NYSE:AXL) » Definitions » Degree of Operating Leverage

AXL (American Axle & Mfg Holdings) Degree of Operating Leverage : -1.10 (As of Mar. 2025)


View and export this data going back to 1999. Start your Free Trial

What is American Axle & Mfg Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. American Axle & Mfg Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for American Axle & Mfg Holdings's Degree of Operating Leverage or its related term are showing as below:

AXL's Degree of Operating Leverage is ranked better than
71.63% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.01 vs AXL: -1.10

American Axle & Mfg Holdings Degree of Operating Leverage Historical Data

The historical data trend for American Axle & Mfg 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.

* Premium members only.

American Axle & Mfg Holdings Degree of Operating Leverage Chart

American Axle & Mfg Holdings 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 -0.94 -15.78 1.81 -5.53 54.11

American Axle & Mfg Holdings 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 -1.51 0.21 7.28 54.11 -1.10

Competitive Comparison of American Axle & Mfg Holdings's Degree of Operating Leverage

For the Auto Parts subindustry, American Axle & Mfg 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.


American Axle & Mfg Holdings's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where American Axle & Mfg Holdings's Degree of Operating Leverage falls into.


;
;

American Axle & Mfg Holdings Degree of Operating Leverage Calculation

American Axle & Mfg Holdings'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
=( 227.4 (Mar. 2025) / 217.2 (Mar. 2024) - 1 )/( 5929.3 (Mar. 2025) / 6192.5 (Mar. 2024) - 1 )
=0.047/-0.0425
=-1.10***

* 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.


American Axle & Mfg Holdings  (NYSE:AXL) 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.


American Axle & Mfg Holdings Degree of Operating Leverage Related Terms

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


American Axle & Mfg Holdings Business Description

Traded in Other Exchanges
Address
One Dauch Drive, Detroit, MI, USA, 48211-1198
American Axle & Mfg Holdings Inc is engaged in manufacturing, engineering, designing, and validation of driveline systems and related components and chassis modules for light trucks, SUVs, crossover vehicles, passenger cars, and commercial vehicles. The company's segment includes Driveline and Metal Forming. It generates maximum revenue from the Driveline segment.
Executives
Terri M. Kemp officer: Senior VP Human Resources ONE DAUCH DRIVE, DETROIT MI 48211
Matthew K. Paroly officer: VP & General Counsel ONE DAUCH DRIVE, DETROIT MI 48211
Norman Willemse officer: VP, Metal Form Prod. Bus. Unit ONE DAUCH DRIVE, DETROIT MI 48211-1198
James A Mccaslin director
Herbert K Parker director 38505 WOODWARD AVENUE, SUITE 200, BLOOMFIELD HILLS MI 48304
John F. Smith director ONE DAUCH DR., DETROIT MI 48211
Tolga I Oal officer: President, AAM North America 201 ISABELLA STREET, PITTSTBURGH PA 15212
Alberto L Satine officer: VP-Procurement ONE DAUCH DRIVE, DETROIT MI 48211
Sandra E. Pierce director 2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Miller William P Ii director 20 S. WACKER DR., CHICAGO IL 60606
Michael Joseph Lynch officer: VP Finance & Controller ONE DAUCH DRIVE, DETROIT MI 48211
Michael K Simonte officer: VP & Treasurer ONE DAUCH DRIVE, DETROIT MI 48211-1198
Bowes Timothy Earl Joseph officer: Senior VP Corporate Planning 2135 WEST MAPLE ROAD, TROY MI 48084
Elizabeth Anne Chappell director ONE DAUCH DRIVE, DETROIT MI 48211
Christopher John May officer: VP & CFO ONE DAUCH DRIVE, DETROIT MI 48211