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CVU (CPI Aerostructures) Degree of Operating Leverage : 1.65 (As of Mar. 2025)


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What is CPI Aerostructures Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CPI Aerostructures's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.65. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CVU's Degree of Operating Leverage is ranked worse than
59.42% of 308 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs CVU: 1.65

CPI Aerostructures Degree of Operating Leverage Historical Data

The historical data trend for CPI Aerostructures'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.

CPI Aerostructures Degree of Operating Leverage Chart

CPI Aerostructures 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 -672.59 -24.90 1.99 7.68 -1.08

CPI Aerostructures 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 8.19 5.25 -1.38 -1.08 1.65

Competitive Comparison of CPI Aerostructures's Degree of Operating Leverage

For the Aerospace & Defense subindustry, CPI Aerostructures'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.


CPI Aerostructures's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, CPI Aerostructures's Degree of Operating Leverage distribution charts can be found below:

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


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CPI Aerostructures Degree of Operating Leverage Calculation

CPI Aerostructures'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
=( 4.707 (Mar. 2025) / 5.354 (Mar. 2024) - 1 )/( 77.399 (Mar. 2025) / 83.531 (Mar. 2024) - 1 )
=-0.1208/-0.0734
=1.65***

* 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.


CPI Aerostructures  (AMEX:CVU) 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.


CPI Aerostructures Degree of Operating Leverage Related Terms

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


CPI Aerostructures Business Description

Traded in Other Exchanges
N/A
Address
91 Heartland Boulevard, Edgewood, NY, USA, 11717
CPI Aerostructures Inc is engaged in the manufacturing of structural aircraft parts for fixed-wing aircraft and helicopters in both the commercial and defense markets in the United States. It also provides engineering, program management, supply chain management and kitting, and Maintenance Repair and Overhaul (MRO) services. CPI also acts as a subcontractor to prime aircraft manufacturers in the production of commercial aircraft parts. CPI Aero supplies the E-2D Advanced Hawkeye surveillance aircraft, the A-10 Thunderbolt attack jet, the Gulfstream G650, the UH-60 BLACK HAWK helicopter, and the S-92 helicopter, and others.
Executives
Richard C Rosenjack director C/O TRIUMPH GROUP, INC., 899 CASSATT ROAD, SUITE 210, BERWYN PA 19312
Pamela Levesque director 91 HEARTLAND BOULEVARD, EDGEWOOD NY 11717
Richard S Caswell director C/O CPI AEROSTRUCTURES, INC., 91 HEARTLAND BOULEVARD, EDGEWOOD NY 11717
Bond E Carey director 3210 CYPRESS MARSH DRIVE, FORT MYERS FL 33905
Paul Packer 10 percent owner C/O GLOBIS CAPITAL PARTNERS LP, 60 BROAD ST, NEW YORK NY 10004
Terry Dean Stinson director C/O LENNOX INTERNATIONAL INC., 2140 LAKE PARK BOULEVARD, RICHARDSON TX 75080-2254
Dorith Hakim director, officer: CEO and President C/O GRAUBARD MILLER, 405 LEXINGTON AVENUE - 11TH FLOOR, NEW YORK NY 10174
Eric Rosenfeld director 777 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Walter Paulick director 30 TERRY PL, RIVERHEAD NY 11901
Michael Faber director 701 PENNSYLVANIA AVENUE NW, SUITE 900, WASHINGTON DC DC 20004
Andrew L Davis officer: Chief Financial Officer C/O EMERSON RADIO CORP., 3 UNIVERSITY PLAZA, SUITE 405, HACKENSACK NJ 07601
Thomas E Powers officer: Acting Chief Financial Officer C/O TRIUMPH GROUP, INC., 899 CASSATT ROAD, SUITE 210, BERWYN PA 19312
Dan Azmon officer: Chief Financial Officer 600 THIRD AVENUE, NEW YORK NY 10016
Janet Katherine Cooper director 8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Awm Investment Company, Inc. 10 percent owner 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022