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CVCO (Cavco Industries) Degree of Operating Leverage : 0.44 (As of Mar. 2025)


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What is Cavco Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cavco Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CVCO's Degree of Operating Leverage is ranked better than
61.7% of 94 companies
in the Homebuilding & Construction industry
Industry Median: 1.055 vs CVCO: 0.44

Cavco Industries Degree of Operating Leverage Historical Data

The historical data trend for Cavco Industries'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.

Cavco Industries Degree of Operating Leverage Chart

Cavco Industries Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.77 2.51 1.41 2.14 0.44

Cavco Industries 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 2.14 3.16 8.85 -0.53 0.44

Competitive Comparison of Cavco Industries's Degree of Operating Leverage

For the Residential Construction subindustry, Cavco Industries'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.


Cavco Industries's Degree of Operating Leverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Cavco Industries's Degree of Operating Leverage distribution charts can be found below:

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


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Cavco Industries Degree of Operating Leverage Calculation

Cavco Industries'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
=( 211.587 (Mar. 2025) / 200.829 (Mar. 2024) - 1 )/( 2015.458 (Mar. 2025) / 1794.792 (Mar. 2024) - 1 )
=0.0536/0.1229
=0.44***

* 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.


Cavco Industries  (NAS:CVCO) 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.


Cavco Industries Degree of Operating Leverage Related Terms

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


Cavco Industries Business Description

Traded in Other Exchanges
N/A
Address
3636 North Central Avenue, Suite 1200, Phoenix, AZ, USA, 85012
Cavco Industries Inc designs and produces factory-built homes under the Cavco Homes, Fleetwood Homes, and Palm Harbor Homes brands. It also produces modular homes, park model homes, and vacation cabins, as well as commercial structures, among others. The company operates principally in two segments: Factory-built housing, which includes wholesale and retail systems-built housing operations, and the Financial services segment, which includes manufactured housing consumer finance and insurance. Cavco receives a majority of its revenue from the Factory-built housing segment.
Executives
David A. Greenblatt director 4218 BEECHWOOD LANE, DALLAS TX 75220-1908
Jack S Brandom officer: President, Financial Services C/O 3636 N. CENTRAL AVE., SUITE 1200, PHOENIX AZ 85012
Matthew A Nino officer: President, Retail C/O 3636 N CENTRAL AVENUE, SUITE 1200, PHOENIX AZ 85012
Susan L Blount director C/O PRUDENTIAL FINANCIAL, INC, 751 BROAD STREET, FOURTH FLOOR, NEWARK NJ 07102
Julia Sze director C/O 3636 N. CENTRAL AVENUE, SUITE 1200, PHOENIX AZ 85012
Richard A Kerley director THE JOINT CORP., 16767 N. PERIMETER DRIVE, SUITE 240, SCOTTSDALE AZ 85260
Paul Bigbee officer: Chief Accounting Officer C/O 3636 N. CENTRAL AVE., SUITE 1200, PHOENIX AZ 85012
Steven G Bunger director
Steven K. Like officer: Senior Vice President 1001 N. CENTRAL AVENUE, SUITE 800, PHOENIX AZ 85004
Gavin Ryan officer: See remarks 3636 N. CENTRAL AVENUE, SUITE 1200, PHOENIX AZ 85012
Rogers Colleen J officer: SVP, Marketing and Comm. C/O 3636 N. CENTRAL AVE., SUITE 1200, PHOENIX AZ 85012
Allison Aden officer: EVP and CFO C/O PROFIT RECOVERY GROUP INTERNATIONAL, 2300 WINDY RIDGE PARKWAY SUITE 100, ATLANTA GA 30339
Brian R Cira officer: President,Manufactured Housing C/O 3636 N. CENTRAL AVE., SUITE 1200, PHOENIX AZ 85012
Anthony Crutcher officer: Chief Information Officer C/O 3636 N. CENTRAL AVE., SUITE 1200, PHOENIX AZ 85012
Steven W Moster director 7000 E. 1ST AVE., SCOTTSDALE AZ 85251