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ELRC (Electro Rent) Degree of Operating Leverage : 0.00 (As of Feb. 2016)


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What is Electro Rent Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Electro Rent's Degree of Operating Leverage for the quarter that ended in Feb. 2016 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ELRC's Degree of Operating Leverage is not ranked *
in the Business Services industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Operating Leverage only.

Electro Rent Degree of Operating Leverage Historical Data

The historical data trend for Electro Rent'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.

Electro Rent Degree of Operating Leverage Chart

Electro Rent Annual Data
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Degree of Operating Leverage
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Electro Rent Quarterly Data
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Competitive Comparison of Electro Rent's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, Electro Rent'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.


Electro Rent's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Electro Rent's Degree of Operating Leverage distribution charts can be found below:

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


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Electro Rent Degree of Operating Leverage Calculation

Electro Rent's Degree of Operating Leverage for the quarter that ended in Feb. 2016 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 14.933 (Feb. 2016) / 24.606 (Feb. 2015) - 1 )/( 196.564 (Feb. 2016) / 238.993 (Feb. 2015) - 1 )
=-0.3931/-0.1775
=2.21***

* 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.


Electro Rent  (NAS:ELRC) 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.


Electro Rent Degree of Operating Leverage Related Terms

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


Electro Rent Business Description

Traded in Other Exchanges
N/A
Address
Electro Rent Corp was incorporated in California in 1965 and became a publicly held corporation in 1980. The Company rental, lease and sells of new and used electronic test and measurement equipment. The Company purchases that equipment from manufacturers such as Agilent and Tektronix primarily for use by its customers in the aerospace, telecommunications, defense, electronics, industrial and semiconductor industries. The Company data products division provides personal computers and servers from manufacturers including Dell, HP/Compaq, IBM, Toshiba and Apple. It has also expanded its rental, lease and sale of electrical test and inspection equipment used in the industrial industry, which includes electrical contractors and utility companies and their related support services providers. The Company's competitors in the North American T&M rental area include McGrath Rent Corp., Continental Resources, Test Equity and Microlease PLC. It competes for rental business with Microlease plc and Livingston Group Ltd. in Europe and Orix Corporation in Asia.
Executives
James S Pignatelli director 2300 E SLINGSHOT WAY, KAMAS UT 84036
Theodore E Guth director 6060 SEPULVEDA BOULEVARD, VAN NUYS CA 91411
Joseph J Kearns director C/O ELECTRO RENT CORP, 6060 SEPULVEDA BLVD, VAN NUYS CA 91411
Platinum Equity Llc 10 percent owner 360 NORTH CRESCENT DRIVE, BEVERLY HILLS CA 90210
Tom Gores 10 percent owner C/O PLATINUM EQUITY, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Investment Holdings Iii, Llc 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iii, Llc 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
S Lee Kling director 1401 S BRENTWOOD BLVD, ST LOUIS MO 63144

Electro Rent Headlines

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