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ELSE (Electro-Sensors) Degree of Operating Leverage : -3.21 (As of Mar. 2025)


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What is Electro-Sensors Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Electro-Sensors's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.21. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ELSE's Degree of Operating Leverage is ranked better than
78.33% of 2414 companies
in the Hardware industry
Industry Median: 1 vs ELSE: -3.21

Electro-Sensors Degree of Operating Leverage Historical Data

The historical data trend for Electro-Sensors'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-Sensors Degree of Operating Leverage Chart

Electro-Sensors 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 31.22 -25.43 -17.19 -56.62 1.24

Electro-Sensors 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 349.38 -15.33 0.50 1.24 -3.21

Competitive Comparison of Electro-Sensors's Degree of Operating Leverage

For the Scientific & Technical Instruments subindustry, Electro-Sensors'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-Sensors's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Electro-Sensors's Degree of Operating Leverage distribution charts can be found below:

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


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Electro-Sensors Degree of Operating Leverage Calculation

Electro-Sensors'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
=( 0.251 (Mar. 2025) / 0.324 (Mar. 2024) - 1 )/( 9.368 (Mar. 2025) / 8.754 (Mar. 2024) - 1 )
=-0.2253/0.0701
=-3.21***

* 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-Sensors  (NAS:ELSE) 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-Sensors Degree of Operating Leverage Related Terms

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


Electro-Sensors Business Description

Industry
Traded in Other Exchanges
N/A
Address
6111 Blue Circle Drive, Minnetonka, MN, USA, 55343-9108
Electro-Sensors Inc manufactures and sells industrial production monitoring and process control systems. It manufactures a complete line of monitoring and control systems for a wide range of industrial machine applications. The systems measure machine production and operation rates, as well as regulate the speed of related machines in production processes. Its products include motor drive control, position monitors, sensor targets, signal conditioners, speed sensors, speed switches, tachometers, temperature sensors, vibration monitors, etc.
Executives
Patricia Nancy Peterson 10 percent owner 6005 ERIN TERRACE, EDINA MN 55439
Paul Rodney Peterson 10 percent owner 227 CEDAR DRIVE WEST, HUDSON WI 54016
John Eberhart Peterson 10 percent owner 815 BUTTONBUSH LANE, NAPLES FL 34108
Michael C. Zipoy director 6111 BLUE CIRCLE DR, MINNETONKA MN 55343
Lynne Elizabeth Peterson 10 percent owner 10254 NOTTINGHAM TRAIL, EDEN PRAIRIE MN 55347
Estate Of Nancy P. Peterson 10 percent owner C/O 15708 WOODKNOLL LANE, MINNETONKA MN 55345
Michael Hochman officer: VP of Casino Card Operations 1100 CANTERBURY ROAD, SHAKOPEE MN 55379
Nancy P. Peterson 10 percent owner 905 MAIN STREET, HOPKINS MN 55343
Nicholas John Swenson 10 percent owner 5000 WEST 36TH STREET, SUITE 130, MINNEAPOLIS MN 55416
Scott A. Gabbard director 6111 BLUE CIRCLE DRIVE, MINNETONKA MN 55343
David L Klenk director 6111 BLUE CIRCLE DRIVE, MINNETONKA MN 55343
Robert W Heller director 10992 MOUNT CURVE ROAD, EDEN PRAIRIE MN 55347
Jeffrey Dean Peterson director 15708 WOODKNOLL LANE, MINNETONKA MN 55345
Geoffrey W Miller director 12735 42ND PLACE N, PLAYMOUTH MN 55442-2350
John S Strom director

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