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ESP (Espey Manufacturing & Electronics) Degree of Operating Leverage : 1.40 (As of Mar. 2025)


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What is Espey Manufacturing & Electronics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Espey Manufacturing & Electronics's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Espey Manufacturing & Electronics's Degree of Operating Leverage or its related term are showing as below:

ESP's Degree of Operating Leverage is ranked worse than
54.87% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs ESP: 1.40

Espey Manufacturing & Electronics Degree of Operating Leverage Historical Data

The historical data trend for Espey Manufacturing & Electronics'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.

Espey Manufacturing & Electronics Degree of Operating Leverage Chart

Espey Manufacturing & Electronics Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.11 11.33 -29.19 16.68 5.90

Espey Manufacturing & Electronics 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 -64.08 5.90 3.82 1.75 1.40

Competitive Comparison of Espey Manufacturing & Electronics's Degree of Operating Leverage

For the Electrical Equipment & Parts subindustry, Espey Manufacturing & Electronics'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.


Espey Manufacturing & Electronics's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Espey Manufacturing & Electronics's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Espey Manufacturing & Electronics's Degree of Operating Leverage falls into.


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Espey Manufacturing & Electronics Degree of Operating Leverage Calculation

Espey Manufacturing & Electronics'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
=( 7.626 (Mar. 2025) / 5.39 (Mar. 2024) - 1 )/( 45.966 (Mar. 2025) / 35.469 (Mar. 2024) - 1 )
=0.4148/0.2959
=1.40***

* 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.


Espey Manufacturing & Electronics  (AMEX:ESP) 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.


Espey Manufacturing & Electronics Degree of Operating Leverage Related Terms

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


Espey Manufacturing & Electronics Business Description

Traded in Other Exchanges
N/A
Address
233 Ballston Avenue, Saratoga Springs, NY, USA, 12866
Espey Manufacturing & Electronics Corp designs, develops, tests, and manufactures specialized military and rugged industrial power supplies and transformers for use in harsh or severe environment applications. Its products and solutions include power converters, power conditioning, high-voltage radar, contract manufacturing, custom engineering, and others. The applications of these products include AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power.
Executives
David A Oneil officer: Treasurer 14 BRIDGET CIRCLE, COHOES NY 12047
Michael W Wool director 131 HILLS POINT RD, CHARLOTTE VT 05402
Paul J Corr director 87 RAILROAD PLACE, UNIT 306, SARATOGA SPRINGS NY 12866
Peggy A Murphy officer: Corporate Secretary 91 FEEDER DAM RD, S GLENSFALLS NY 12803
Nancy Koskey Patzwahl director 81 OLD LANE, CLAVERACK NY 12513
Katrina Leonore Sparano officer: Assistant Treasurer 670 ACLAND BLVD., BALLSTON SPA NY 12020
Howard M Pinsley director, officer: President/CEO, other: Chairman of the Board 233 BALLSTON AVE., SARATOGA SPRINGS NY 12866
Barry Pinsley director 6101 PELICAN BAY BLVD., NAPLES FL 34108
Alvin O Sabo director 51 ISLAND VIEW ROAD, COHOES NY 12047
Sexauer Roger Nicholas Ii director 2820 BENNETT POINT RD., QUEENSTOWN MD 21658
Carl Helmetag director 330 SEA VIEW, RIVERSIDE RI 02915
Enright Patrick Thomas Jr. director, officer: President and CEO 3111 SQUAW CREEK TRAIL, BALLSTON SPA NY 12020
St Pierre Mark Francis officer: President 13 SECLUDED RIDGE, SOUTHWICK MA 01077
Espey Mfg. & Electronics Corp. Employee Retirement Plan & Trust 10 percent owner, other: Retirement Plan Trust 233 BALLSTON AVE., SARATOGA SPRINGS NY 12866
Seymour Saslow director 199 CAROLINE ST, SARATOGA SPRINGS NY 12866