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FURCF (Forvia SE) Degree of Operating Leverage : 97.86 (As of Jun. 2024)


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What is Forvia SE Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Forvia SE's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 97.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FURCF's Degree of Operating Leverage is ranked worse than
97.17% of 1273 companies
in the Vehicles & Parts industry
Industry Median: 1.19 vs FURCF: 97.86

Forvia SE Degree of Operating Leverage Historical Data

The historical data trend for Forvia SE'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.

Forvia SE Degree of Operating Leverage Chart

Forvia SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.11 5.13 87.32 -1.76 -1,627.43

Forvia SE Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -6.90 -1.76 -8.53 -1,627.43 97.86

Competitive Comparison of Forvia SE's Degree of Operating Leverage

For the Auto Parts subindustry, Forvia SE'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.


Forvia SE's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Forvia SE's Degree of Operating Leverage distribution charts can be found below:

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



Forvia SE Degree of Operating Leverage Calculation

Forvia SE's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 713.499 (Jun. 2024) / 408.444 (Jun. 2023) - 1 )/( 29429.527 (Jun. 2024) / 28888.657 (Jun. 2023) - 1 )
=0.7469/0.0187
=39.89***

* 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.


Forvia SE  (OTCPK:FURCF) 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.


Forvia SE Degree of Operating Leverage Related Terms

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


Forvia SE Business Description

Address
23-27 avenue des Champs-Pierreux, Nanterre, FRA, 92000
Forvia SE operates in automotive seating, interior systems, emission control technologies, electronics, lighting, and a segment called lifecycle solutions that does automotive-related recycling. The company has a world-wide presence, with over 300 industrial facilities and 63 R&D centers in more than 40 countries, but much of its workforce is located in high-cost countries. Forvia's customers by percentage of 2022 revenue are Volkswagen at 15.4%, Stellantis at 11.7%, Ford at 7.7%, the Renault-Nissan-Mitsubishi Alliance at 6.2%, and Mercedes-Benz at 6.1%. Geographically, Europe accounted for 44% of 2022 revenue, followed by North America at 25%, China at 21%, and all other regions at 10%.

Forvia SE Headlines

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