FIRRF (First Tractor Co) Degree of Operating Leverage : 1.20 (As of Dec. 2025)

First Tractor Co  (OTCPK:FIRRF) 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.

First Tractor Co Degree of Operating Leverage Related Terms

The historical data trend for First Tractor Co'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.

First Tractor Co Degree of Operating Leverage Chart

First Tractor Co Annual Data
	Trend	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23	Dec24	Dec25
Degree of Operating Leverage		Get a 7-Day Free Trial					1.06	0.66	-6.03	0.25	1.20

First Tractor Co Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Jun25	Sep25	Dec25
Degree of Operating Leverage	Get a 7-Day Free Trial															-2.38	0.25	1.55	1.50	1.20

FIRRF vs CAT, DE, PCAR: Degree of Operating Leverage Comparison

For the Farm & Heavy Construction Machinery subindustry, First Tractor Co'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.

First Tractor Co Degree of Operating Leverage vs Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, First Tractor Co's Degree of Operating Leverage distribution charts can be found below:

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

First Tractor Co Degree of Operating Leverage Calculation

First Tractor Co's Degree of Operating Leverage for the quarter that ended in Dec. 2025 is calculated as:

* 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.

First Tractor Co Business Description