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HLKHF (HELLA GmbH KGaA) Degree of Operating Leverage : -710.39 (As of Sep. 2024)


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What is HELLA GmbH KGaA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. HELLA GmbH KGaA's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -710.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HLKHF's Degree of Operating Leverage is ranked better than
99.61% of 1273 companies
in the Vehicles & Parts industry
Industry Median: 1.19 vs HLKHF: -710.39

HELLA GmbH KGaA Degree of Operating Leverage Historical Data

The historical data trend for HELLA GmbH KGaA'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.

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HELLA GmbH KGaA Degree of Operating Leverage Chart

HELLA GmbH KGaA Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -40.59 8.61 -25.12 48.74 4.77

HELLA GmbH KGaA Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.56 4.77 5.52 11.75 -710.39

Competitive Comparison of HELLA GmbH KGaA's Degree of Operating Leverage

For the Auto Parts subindustry, HELLA GmbH KGaA'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.


HELLA GmbH KGaA's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

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

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



HELLA GmbH KGaA Degree of Operating Leverage Calculation

HELLA GmbH KGaA's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 576.595 (Sep. 2024) / 510.6 (Sep. 2023) - 1 )/( 8678.314 (Sep. 2024) / 8435.461 (Sep. 2023) - 1 )
=0.1292/0.0288
=4.49***

* 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.


HELLA GmbH KGaA  (OTCPK:HLKHF) 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.


HELLA GmbH KGaA Degree of Operating Leverage Related Terms

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HELLA GmbH KGaA Business Description

Traded in Other Exchanges
Address
Rixbecker Strasse 75, Lippstadt, NW, DEU, 59552
HELLA GmbH & Co KGaA is a manufacturer of lighting and electronic components and systems for the automotive industry. The company also produces complete vehicle modules, air-conditioning systems, and vehicle electrical systems in its joint-venture companies, as well as products for specialist vehicles. Further, Hella operates a trade organisation for automotive parts, accessories, diagnosis, and services in Europe. The company is controlled through a pooled family majority shareholding in the group. The company has three reportable segments which are Lighting, Electronics and Lifecycle Solutions. The company generates majority of the revenue from Lighting segment.

HELLA GmbH KGaA Headlines