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CAPS (Capstone Holding) Degree of Operating Leverage : 5.25 (As of Mar. 2025)


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What is Capstone Holding Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Capstone Holding's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CAPS's Degree of Operating Leverage is ranked worse than
73.9% of 387 companies
in the Building Materials industry
Industry Median: 1.64 vs CAPS: 5.25

Capstone Holding Degree of Operating Leverage Historical Data

The historical data trend for Capstone Holding'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.

Capstone Holding Degree of Operating Leverage Chart

Capstone Holding 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 - 2.00 1.79 6.89 9.27

Capstone Holding 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 6.94 11.05 690.93 9.27 5.25

Competitive Comparison of Capstone Holding's Degree of Operating Leverage

For the Building Materials subindustry, Capstone Holding'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.


Capstone Holding's Degree of Operating Leverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Capstone Holding's Degree of Operating Leverage distribution charts can be found below:

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


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Capstone Holding Degree of Operating Leverage Calculation

Capstone Holding'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
=( -1.349 (Mar. 2025) / -1.94 (Mar. 2024) - 1 )/( 43.416 (Mar. 2025) / 46.093 (Mar. 2024) - 1 )
=-0.3046/-0.0581
=5.25***

* 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.


Capstone Holding  (NAS:CAPS) 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.


Capstone Holding Degree of Operating Leverage Related Terms

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


Capstone Holding Business Description

Traded in Other Exchanges
N/A
Address
5141 West 122nd Street, Suite 104, Alsip, IL, USA, 60803
Capstone Holding Corp is a building products distribution network. The existing network is comprised of Instone, a distributor of thin veneer stone and related masonry products in the United States, serving both residential and commercial construction markets. The company's product offering includes manufactured and natural stone products, supported by a distribution network. The company's current products include stone veneer, landscape stone, and modular masonry fireplaces.
Executives
Alimco Financial Corp other: See Remarks 2336 S.E. OCEAN BOULEVARD SUITE 400, STUART FL 34996
Neil S Subin 10 percent owner 2336 S.E. OCEAN BOULEVARD, #400, STUART FL 34996
Miller Lloyd I Iii 10 percent owner
Michael Toporek director, other: See Explanation of Responses C/O MECHANICAL TECHNOLOGY, INCORPORATED, 325 WASHINGTON AVENUE EXTENSION, ALBANY NY 12205
Bp Peptides, Llc 10 percent owner 122 EAST 42ND STREET, SUITE 4305, NEW YORK NY 10168
Matthew E. Lipman director, 10 percent owner C/O MECHANICAL TECHNOLOGY, INCORPORATED, 325 WASHINGTON AVENUE EXTENSION, ALBANY NY 12205
Biotechnology Value Fund L P 10 percent owner, other: Direct Beneficial Owner 44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104
Leslie M Taeger officer: Chief Financial Officer
Mark N Lampert 10 percent owner 1 SANSOME ST, 30TH FL, SAN FRANCISCO CA 94104
Eric W Fangmann director 1540 10TH AVENUE, SAN DIEGO CA 92101
Holliman John M Iii director, officer: Executive Chairman 6155 N SCOTTADALE ROAD STE 100, SCOTTSDALE AZ 85250
Fredric J Feldman director 1275 W. WASHINGTON, TEMPE AZ 85281
Bvf Partners L P/il 10 percent owner, other: Indirect Beneficial Owner 44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104
Bvf Investments Llc 10 percent owner, other: Direct Beneficial Owner 1 SANSOME ST, 30TH FL, SAN FRANCISCO CA 94104
William M Wardell director 58 CHRISTOPHER DR, PRINCETON NJ 08540