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HLLY (Holley) Degree of Operating Leverage : 8.00 (As of Mar. 2025)


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What is Holley Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Holley's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 8.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HLLY's Degree of Operating Leverage is ranked worse than
84.11% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.02 vs HLLY: 8.00

Holley Degree of Operating Leverage Historical Data

The historical data trend for Holley'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.

Holley Degree of Operating Leverage Chart

Holley Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 2.33 -1.97 -669.97 6.10 8.30

Holley Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 13.63 1.04 -3.35 8.30 8.00

Competitive Comparison of Holley's Degree of Operating Leverage

For the Auto Parts subindustry, Holley'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.


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

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

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


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Holley Degree of Operating Leverage Calculation

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

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 30.188 (Mar. 2025) / 78.057 (Mar. 2024) - 1 )/( 596.632 (Mar. 2025) / 646.135 (Mar. 2024) - 1 )
=-0.6133/-0.0766
=8.00***

* 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.


Holley  (NYSE:HLLY) 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.


Holley Degree of Operating Leverage Related Terms

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


Holley Business Description

Traded in Other Exchanges
Address
2445 Nashville Road, Suite B1, Bowling Green, KY, USA, 42101
Holley Inc is a designer, marketer, and manufacturer of high-performance automotive aftermarket products, featuring a portfolio of iconic brands serving the car and truck industry. It offers a diversified line of performance automotive products including fuel injection systems, tuners, exhaust products, carburetors, safety equipment and various other performance automotive products. The Company's products are designed to enhance street, off-road, recreational and competitive vehicle performance through increased horsepower, torque and drivability. The company's brands include Holley, APR, MSD and Flowmaster, among others. It derives revenue from the U.S. and Italy, of which prime revenue is derived from the U.S.
Executives
David S Lobel director, 10 percent owner C/O SENTINEL CAPITAL PARTNERS II, 777 THIRD AVE. 32ND FL, NEW YORK NY 10017
Matthew E Rubel director 3231 SE SIXTH AVENUE, TOPEKA KS 66607
Graham Clempson director, officer: President and Director C/O MIDOCEAN PARTNERS, 245 PARK AVENUE, 38TH FLOOR, NEW YORK NY 10167
Matthew Stevenson director, officer: President and CEO 150 PEABODY PLACE, M.S. LEGL-0008, MEMPHIS TN 38103
Ginger M Jones director 55 JEWELERS PARK DRIVE, NEENAH WI 54956
James D. Coady director, 10 percent owner C/O SENTINEL CAPITAL PARTNERS, L.L.C., 330 MADISON AVENUE, 27TH FLOOR, NEW YORK CITY NY 10017
Owen Basham director, 10 percent owner C/O SENTINEL CAPITAL PARTNERS, L.L.C., 330 MADISON AVENUE, 27TH FLOOR, NEW YORK NY 10017
Midocean Partners V, L.p. 10 percent owner C/O MIDOCEAN PARTNERS, 320 PARK AVENUE, SUITE 1600, NEW YORK NY 10022
Jesse Weaver officer: Chief Financial Officer 1801 RUSSELLVILLE ROAD, BOWLING GREEN KY 42101
Brian Appelgate officer: Interm Chief Operating Officer 1801 RUSSELLVILLE ROAD, BOWLING GREEN KY 42101
Dominic Bardos officer: Chief Financial Officer 1801 RUSSELLVILLE RD, BOWLING GREEN KY 42101
Thomas W Tomlinson director, officer: Chief Executive Officer 1801 RUSSELLVILLE RD, BOWLING GREEN KY 42101
Anita Sehgal director 817 MAXWELL AVENUE, EVANSVILLE IN 47711
Carly Kennedy officer: EVP & General Counsel 1801 RUSSELLVILLE ROAD, BOWLING GREEN KY 42101
Gina L Bianchini director 312 WALNUT STREET, SUITE 1800, CINCINNATI OH 45202