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BKTI (BK Technologies) Degree of Operating Leverage : -171.22 (As of Dec. 2024)


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What is BK Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. BK Technologies's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -171.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BKTI's Degree of Operating Leverage is ranked better than
98.76% of 2422 companies
in the Hardware industry
Industry Median: 1.045 vs BKTI: -171.22

BK Technologies Degree of Operating Leverage Historical Data

The historical data trend for BK Technologies'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.

BK Technologies Degree of Operating Leverage Chart

BK Technologies 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 -12.18 -79.39 69.88 -1.89 -171.22

BK Technologies 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 -1.89 -6.28 -23.50 74.39 -171.22

Competitive Comparison of BK Technologies's Degree of Operating Leverage

For the Communication Equipment subindustry, BK Technologies'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.


BK Technologies's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, BK Technologies's Degree of Operating Leverage distribution charts can be found below:

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


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BK Technologies Degree of Operating Leverage Calculation

BK Technologies'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
=( 7.641 (Dec. 2024) / -1.601 (Dec. 2023) - 1 )/( 76.592 (Dec. 2024) / 74.094 (Dec. 2023) - 1 )
=-5.7726/0.0337
=-171.22***

* 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.


BK Technologies  (AMEX:BKTI) 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.


BK Technologies Degree of Operating Leverage Related Terms

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


BK Technologies Business Description

Industry
Traded in Other Exchanges
N/A
Address
7100 Technology Drive, West Melbourne, FL, USA, 32904
BK Technologies Corp a holding company, operates through its subsidiary, BK Technologies, Inc., specializing in designing, manufacturing, and marketing wireless communications equipment. Its Radio business unit offers two-way land mobile radios (LMRs) serving government and public safety markets, as well as industrial and commercial enterprises. The SaaS business unit focuses on public safety smartphone applications, enhancing first responders' safety and efficiency. The BKRplay application, tethered to BK radios, amplifies user capabilities, expanding the reach of their radio sales. Its product portfolio consists of two-way land mobile radios, handheld radios, radios installed in vehicles.
Executives
Charles T Lanktree director 6 LAYER DR., MORRIS PLANS NJ 07950
John M Suzuki director, officer: CEO 7100 TECHNOLOGY DRIVE, WEST MELBOURNE FL 32904
Fundamental Global Gp, Llc 10 percent owner 108 GATEWAY BLVD., SUITE 204, MOORESVILLE NC 28117
Scott A. Malmanger officer: CFO and Secretary 13506 SUMMERPORT PKWY #160, WINDERMERE FL 34786
E. Gray Payne director C/O RELM WIRELESS CORPORATION, 7100 TECHNOLOGY DRIVE, WEST MELBOURNE FL 32904
Robert Joseph Jackson director 743 JETTON STREET, DAVIDSON NC 28036
Bk Technologies Holdings, Llc 10 percent owner 108 GATEWAY BLVD., SUITE 204, MOORESVILLE NC 28117
Lloyd Roberts Sams director 10849 FLOWERSTONE STREET, OAKTON VA 22124
Michael C Mitchell director C/O BALLANTYNE STRONG, INC., 4201 CONGRESS STREET, SUITE 175, CHARLOTTE NC 28209
Fundamental Global Investors, Llc 10 percent owner 136 CORPORATE PARK DRIVE, SUITE G, MOORESVILLE NC 28117
Joseph H Moglia 10 percent owner AMERITRADE HOLDING CORP, 4211 S 102ND ST, OMAHA NE 68127
Kyle Cerminara director, 10 percent owner C/O FUNDAMENTAL GLOBAL INVESTORS, LLC, 108 GATEWAY BLVD., SUITE 204, MOORESVILLE NC 28117
Lewis M Johnson 10 percent owner C/O FUNDAMENTAL GLOBAL INVESTORS, LLC, 108 GATEWAY BLVD., SUITE 204, MOORESVILLE NC 28117
Branko Avanic officer: Chief Technology Officer C/O BK TECHNOLOGIES CORPORATION, 7100 TECHNOLOGY DRIVE, WEST MELBOURNE FL 32904
Randy Willis officer: Chief Operating Officer C/O RELM WIRELESS CORPORATION, 7100 TECHNOLOGY DRIVE, WEST MELBOURNE FL 32904