GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Gencor Industries Inc (AMEX:GENC) » Definitions » Degree of Operating Leverage

GENC (Gencor Industries) Degree of Operating Leverage : 5.03 (As of Jun. 2024)


View and export this data going back to 2003. Start your Free Trial

What is Gencor Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Gencor Industries's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 5.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

GENC's Degree of Operating Leverage is ranked worse than
78.37% of 208 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.505 vs GENC: 5.03

Gencor Industries Degree of Operating Leverage Historical Data

The historical data trend for Gencor Industries'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.

Gencor Industries Degree of Operating Leverage Chart

Gencor Industries Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.82 8.64 -8.60 23.12 144.19

Gencor Industries Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 60.99 144.19 -27.90 9.70 5.03

Competitive Comparison of Gencor Industries's Degree of Operating Leverage

For the Farm & Heavy Construction Machinery subindustry, Gencor Industries'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.


Gencor Industries's Degree of Operating Leverage Distribution in the Farm & Heavy Construction Machinery Industry

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

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


;
;

Gencor Industries Degree of Operating Leverage Calculation

Gencor Industries'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
=( 15.14 (Jun. 2024) / 11.883 (Jun. 2023) - 1 )/( 113.116 (Jun. 2024) / 107.275 (Jun. 2023) - 1 )
=0.2741/0.0544
=5.03***

* 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.


Gencor Industries  (AMEX:GENC) 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.


Gencor Industries Degree of Operating Leverage Related Terms

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


Gencor Industries Business Description

Traded in Other Exchanges
N/A
Address
5201 North Orange Blossom Trail, Orlando, FL, USA, 32810
Gencor Industries Inc and its subsidiaries is a manufacturer of heavy machinery used in the production of highway construction materials and environmental control equipment. The Company has one reporting segment, equipment for the highway construction industry. The firm's principal products include asphalt plants, combustion systems, hot mix asphalt plants, fluid heat transfer systems, and asphalt pavers.
Executives
Marc G Elliott officer: Pres., Const. Equip. Group 5201 N ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Jeanne M Lyons officer: Secretary 5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Ketcham Walter A Jr director 5201 N ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Thomas A. Vecchiolla director 601 QUEEN STREET, ALEXANDRIA VA 22314
Eric E Mellen officer: CFO 5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
James P Sharp director 5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
John G Coburn director 10505 GUNSTON ROAD, HORTON VA 22079
Sherry Houtkin 10 percent owner 3900 ISLAND BLVD., PENTHOUSE 4, AVENTURA FL 33160
David Air director PO BOX 1188, DUNDEE FL 33838
Dondero Cort J director
Lawrence C Maingot officer: Vice President and Controller 5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Dennis Bryan Hunt officer: Senior Vice President 2790 MARSH WREN CIRCLE, LONGWOOD FL 32779
Lawrence K Miles officer: Vice President Product Support 5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Lowell Raymond Adams officer: CFO and Treasurer 1722 SE HALYARD LANE, VANCOUVER WA 98661
Robert A Mifflin officer: Interim CFO 5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810