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Heico (HEI) Degree of Operating Leverage : 1.24 (As of Apr. 2025)


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What is Heico Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Heico's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 1.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HEI's Degree of Operating Leverage is ranked worse than
52.46% of 305 companies
in the Aerospace & Defense industry
Industry Median: 1.09 vs HEI: 1.24

Heico Degree of Operating Leverage Historical Data

The historical data trend for Heico'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.

Heico Degree of Operating Leverage Chart

Heico Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.36 0.98 1.42 0.76 1.05

Heico Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 0.73 0.85 1.05 1.24 -

Competitive Comparison of Heico's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Heico'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.


Heico's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Heico's Degree of Operating Leverage distribution charts can be found below:

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


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Heico Degree of Operating Leverage Calculation

Heico's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 912.909 (Apr. 2025) / 731.263 (Apr. 2024) - 1 )/( 4133.953 (Apr. 2025) / 3511.107 (Apr. 2024) - 1 )
=0.2484/0.1774
=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.


Heico  (NYSE:HEI) 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.


Heico Degree of Operating Leverage Related Terms

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


Heico Business Description

Address
3000 Taft Street, Hollywood, FL, USA, 33021
Heico is an aerospace and defense supplier that focuses on creating niche replacement parts for commercial aircraft and components for defense products. In commercial aerospace, Heico is the largest independent producer of replacement aircraft parts. In the defense market, the company produces niche subcomponents used in targeting technology as well as simulation equipment, among other categories. It operates as two segments: the flight support group,or FSG, and the electronic technologies group, or ETG, both of which supply the aerospace and defense sectors to different degrees. The company is persistently acquisitive, focusing on companies in similar or adjacent markets that are generating strong cash flow and profitable growth potential.
Executives
Carol F. Fine director 3000 TAFT STREET, HOLLYWOOD FL 33021
Laurans A Mendelson director, 10 percent owner, officer: COB and CEO
Wolfgang Mayrhuber director C/O HEICO, 3000 TAFT STREET, HOLLYWOOD FL 33021
Adolfo Henriques director C/O UNION PLANTERS CORP, 6200 POPLAR AVE, MEMPHIS TN 38119
Julie Neitzel director 3000 TAFT STREET, HOLLYWOOD FL 33021
Mark H Hildebrandt director 3000 TAFT STREET, HOLLYWOOD FL 33021
Frank J Schwitter director 45 SUTTON PLACE SOUTH APT. 12G, NEW YORK X1 10022
Eric A Mendelson director, officer: Co-President
Victor H Mendelson director, officer: Executive Vice President
Thomas M Culligan director 3000 TAFT STREET, HOLLYWOOD FL 33021
Alan Schriesheim director 3000 TAFT STREET, HOLLYWOOD FL 33021
Thomas S Irwin officer: Executive Vice President, CFO 3000 TAFT STREET, HOLLYWOOD FL 33021
Steven M Walker officer: Chief Accounting Officer 3000 TAFT STREET, HOLLYWOOD FL 33021
Samuel L Higginbottom director
Carlos L Macau officer: EVP-CFO & Treasurer 3000 TAFT STREET, HOLLYWOOD FL 33021