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IEH (IEHC) Degree of Operating Leverage : -2.31 (As of Mar. 2025)


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What is IEH Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. IEH's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.31. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

IEHC's Degree of Operating Leverage is ranked better than
75.55% of 2413 companies
in the Hardware industry
Industry Median: 1 vs IEHC: -2.31

IEH Degree of Operating Leverage Historical Data

The historical data trend for IEH'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.

IEH Degree of Operating Leverage Chart

IEH Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - -24.56 -2.83 -

IEH Quarterly Data
Sep19 Dec19 Mar20 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 Premium Member Only -2.83 -2.74 -2.75 -2.31 -

Competitive Comparison of IEH's Degree of Operating Leverage

For the Electronic Components subindustry, IEH'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.


IEH's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, IEH's Degree of Operating Leverage distribution charts can be found below:

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


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IEH Degree of Operating Leverage Calculation

IEH'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
=( 0.575 (Mar. 2025) / -3.761 (Mar. 2024) - 1 )/( 28.784 (Mar. 2025) / 21.525 (Mar. 2024) - 1 )
=-1.1529/0.3372
=-3.42***

* 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.


IEH  (OTCPK:IEHC) 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.


IEH Degree of Operating Leverage Related Terms

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


IEH Business Description

Industry
Traded in Other Exchanges
N/A
Address
140 58th Street, Suite 8E, Brooklyn, NY, USA, 11220
IEH Corp designs develops and manufactures printed circuit board (PCB) connectors, custom interconnectors, and contacts for high-performance applications with its Hyperboloid technology. It supplies durable, reliable connectors for demanding environments. The company markets to companies in defense, aerospace, space, and industrial applications, in the United States, Canada, Europe, Southeast, and Central Asia, and the Mideast. The company generates the majority of its revenue from the United States.
Executives
Dave Offerman director, officer: Chief Executive Officer 140 58TH STREET, SUITE 8E, BROOKLYN NY 11220
Subrata Purkayastha officer: Chief Financial Officer 140 58TH STREET, BUILDING B SUITE 8E, BROOKLYN NY 11220
Gail Offerman 10 percent owner 2984 WYNSUM AVENUE, MERRICK NY 11566
Zeff Capital, Lp 10 percent owner 400 S. MCCADDEN PL., LOS ANGELES CA 90020
2020 David Offerman Trust 10 percent owner 17 MOHAWK TRAIL, WESTFIELD NJ 07090
William H Craig officer: Chief Financial Officer
Daniel Zeff 10 percent owner 400 S. MCCADDEN PL., LOS ANGELES CA 90020
Zeff Holding Company, Llc 10 percent owner 400 S. MCCADDEN PL., LOS ANGELES CA 90020
Michael E Rosenfeld director 1365 YORK AVENUE, APT. 3A, NEW YORK NY 10021
Robert Knoth officer: CFO, Secretary and Treasurer 140 58TH STREET, BLDG. B, SUITE 8E, IEH CORPORATION, BROOKLYN NY 11220
Gerald E. Chafetz director C/O IEH CORP. 140 58TH STREET, BLDG. B, SUITE 8E, BROOKLYN NY 11220
Michael Offerman director, 10 percent owner, officer: Chairman & President