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ELA (Envela) Degree of Operating Leverage : 1.00 (As of Mar. 2025)


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What is Envela Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Envela's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ELA's Degree of Operating Leverage is ranked better than
53.93% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.295 vs ELA: 1.00

Envela Degree of Operating Leverage Historical Data

The historical data trend for Envela'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.

Envela Degree of Operating Leverage Chart

Envela 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 2.97 2.24 1.24 8.91 -1.04

Envela 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 4.08 2.09 3.30 -1.04 1.00

Competitive Comparison of Envela's Degree of Operating Leverage

For the Luxury Goods subindustry, Envela'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.


Envela's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Envela's Degree of Operating Leverage distribution charts can be found below:

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


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Envela Degree of Operating Leverage Calculation

Envela'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
=( 9.943 (Mar. 2025) / 8.703 (Mar. 2024) - 1 )/( 188.775 (Mar. 2025) / 165.312 (Mar. 2024) - 1 )
=0.1425/0.1419
=1.00***

* 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.


Envela  (AMEX:ELA) 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.


Envela Degree of Operating Leverage Related Terms

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


Envela Business Description

Traded in Other Exchanges
N/A
Address
1901 Gateway Drive, Suite 100, Irving, TX, USA, 75038
Envela Corp is a provider of recycling and re-commerce services at the forefront of the circular economy. These include re-commercializing luxury hard assets, consumer electronics and IT equipment; and end-of-life recycling solutions. It operates through two segments, Consumer, and Commercial Services. The Consumer segment which generates key revenue for the company predominantly buys to resell or recycle luxury hard assets like jewelry, diamonds, gemstones, fine watches, rare coins and related collectibles, precious-metal bullion products, gold, silver, and other precious metals. The Commercial Services segment provides asset-disposition solutions to government agencies, middle-market firms, corporations, and other organizations.
Executives
Allison M Destefano director 5353 KELLER SPRINGS, #2221, DALLAS TX 75248
Bret Allen Pedersen officer: CHIEF FINANCIAL OFFICER 13022 PRESTON RD, DALLAS TX 75240
Richard D Schepp director C/O KOHLS LEGAL, N56 W170000 RIDGEWOOD DR, MENOMONEE FALLS WI 53051
James R Ruth director 1337 EAGLE BEND DRIVE, SOUTHLAKE TX 76092
Alexandra C Griffin director 2500 MCKINNEY AVE., #839, DALLAS TX 75201
Joel S Friedman director 11527 ASHLEY LANE, FRISCO TX 75035
Eduro Holdings, Llc 10 percent owner 38660 SUSSEX HWY., BLDG 10, #102, DELMAR DE 19940-3529
John Richardson Loftus director, 10 percent owner, officer: Chairman, President & CEO 13022 PRESTON RD, DALLAS TX 75240
Truscott Capital, Llc 10 percent owner 40 E. MAIN STREET, SUITE 626, NEWARK DE 19711
Ntr Metals, Llc 10 percent owner 10720 COMPOSITE DRIVE, DALLAS TX 75220
Elemetal, Llc 10 percent owner 15850 DALLAS PARKWAY, DALLAS TX 75248
Stephen Raymond Patterson officer: Acting Chief Financial Officer 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248
William E Leroy director 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248
Michael J. Noel director 724 LEXINGTON AVE, COPPELL TX 75019
Nabil J. Lopez director, officer: Chief Financial Officer 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248