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AYRO (AYRO) Degree of Operating Leverage : 0.43 (As of Dec. 2024)


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What is AYRO Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AYRO's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.43. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AYRO's Degree of Operating Leverage is ranked better than
59.67% of 1282 companies
in the Vehicles & Parts industry
Industry Median: 1.06 vs AYRO: 0.43

AYRO Degree of Operating Leverage Historical Data

The historical data trend for AYRO'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.

AYRO Degree of Operating Leverage Chart

AYRO Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.29 3.22 -2.60 -0.25 0.43

AYRO Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -0.25 -0.16 -0.02 0.22 0.43

Competitive Comparison of AYRO's Degree of Operating Leverage

For the Auto Manufacturers subindustry, AYRO'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.


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

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

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


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AYRO Degree of Operating Leverage Calculation

AYRO's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -17.717 (Dec. 2024) / -28.156 (Dec. 2023) - 1 )/( 0.064 (Dec. 2024) / 0.499 (Dec. 2023) - 1 )
=-0.3708/-0.8717
=0.43***

* 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.


AYRO  (NAS:AYRO) 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.


AYRO Degree of Operating Leverage Related Terms

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


AYRO Business Description

Traded in Other Exchanges
N/A
Address
1185 Avenue of the Americas, New York, NY, USA, 10036
AYRO Inc designs and manufactures compact, sustainable electric vehicles for closed campus mobility, low-speed urban and community transport, local on-demand and last-mile delivery, and government use. It operates as one reportable segment, focusing on the manufacturing and sales of environmentally-conscious, minimal-footprint EVs.
Executives
Joshua Silverman director IROQUOIS CAPITAL MANAGEMENT LLC, 205 EAST 42ND ST - 20TH FL., NEW YORK NY 10017
Zvi Joseph director C/O DROPCAR, INC., 1412 BROADWAY, SUITE 2105, NEW YORK NY 10018
Gregory T Schiffman director 1030 NW JOHNSON ST, UNIT 608, PORTLAND OR 97209
Sebastian Giordano director ONE EAST UWCHLAN AVENUE, SUITE 301, EXTON PA 19341
George Devlin director COMPAQ COMPUTER CORP, P O BOX 692000 MC: 110701, HOUSTON TX 77269
Wayne Remell Walker director 1515 MARKET STREET, SUITE 1720, PHILADELPHIA PA 19103
Thomas Michael Wittenschlaeger officer: Chief Executive Officer RAPTOR NETWORKS TECHNOLOGY, 65 ENTERPRISE RD., ALISO VIEJO CA 92656
David E. Hollingsworth officer: Interim CFO 319 FLAT ROCK DR., HUTTO TX 78634
Keller Rodney C. Jr. director, officer: Chief Executive Officer 900 E. OLD SETTLERS BLVD., SUITE 100, ROUND ROCK TX 78664
Richard Perley officer: Chief Marketing Officer 900 E. OLD SETTLERS BLVD., SUITE 100, ROUND ROCK TX 78664
Curtis Ellis Smith officer: Chief Financial Officer 900 E. OLD SETTLERS BLVD., SUITE 100, ROUND ROCK TX 78664
Brian Ray Groh officer: Chief of Business Development 825 WEST DRUMFRIES ROAD N., PARIS A6 N3L 3E2
Mark Adams director, 10 percent owner 12130 HIGHWAY 3, BUILDING 1, WEBSTER TX 77598
Victoria C Pasquale officer: Chief Human Resources Officer C/O DROPCAR, INC., 1412 BROADWAY, SUITE 2105, NEW YORK NY 1008
Capital Anstalt Alpha 10 percent owner LETTSTRASSE 32, FL-9490, VADUZ N2 00000