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LCID (Lucid Group) Degree of Operating Leverage : -0.31 (As of Mar. 2025)


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What is Lucid Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lucid Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.31. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LCID's Degree of Operating Leverage is ranked better than
67.42% of 1289 companies
in the Vehicles & Parts industry
Industry Median: 1.06 vs LCID: -0.31

Lucid Group Degree of Operating Leverage Historical Data

The historical data trend for Lucid Group'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.

Lucid Group Degree of Operating Leverage Chart

Lucid Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -12.54 0.44 -0.02 -56.56 -0.12

Lucid Group 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 -3.19 -0.24 2.44 -0.12 -0.31

Competitive Comparison of Lucid Group's Degree of Operating Leverage

For the Auto Manufacturers subindustry, Lucid Group'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.


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

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

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


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Lucid Group Degree of Operating Leverage Calculation

Lucid Group'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
=( -2362.301 (Mar. 2025) / -2703.358 (Mar. 2024) - 1 )/( 870.14 (Mar. 2025) / 618.579 (Mar. 2024) - 1 )
=-0.1262/0.4067
=-0.31***

* 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.


Lucid Group  (NAS:LCID) 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.


Lucid Group Degree of Operating Leverage Related Terms

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


Lucid Group Business Description

Traded in Other Exchanges
Address
7373 Gateway Boulevard, Newark, CA, USA, 94560
Lucid Group Inc is a technology and automotive company. It develops the next generation of electric vehicle (EV) technologies. It offers its own geographically distributed retail and service locations and through direct-to-consumer online and retail sales. It also boasts a product roadmap of future vehicle programs and technologies. It focuses on in-house hardware and software innovation, vertical integration, and a clean-sheet approach to engineering and design led to the development of the Lucid Air. The Lucid Air is a luxury sedan that redefines both the luxury car segment and the EV space. Its geographic segments include North America, the Middle East, and Other International.
Executives
Investment Fund Public director, 10 percent owner THE PUBLIC INVESTMENT FUND TOWER,, KING ABDULLAH FINANCIAL DISTRICT (KAFD), AL AQIQ DISTRICT, RIYADH T0 13519
Eric Bach officer: SVP, Product & Chief Engineer 7373 GATEWAY BLVD,, NEWARK CA 94560
Michael Bell officer: Senior Vice President, Digital C/O SILVER SPRING NETWORKS, INC., 555 BROADWAY STREET, REDWOOD CITY CA 94063
Ayar Third Investment Co director, 10 percent owner C/O THE PUBLIC INVESTMENT FUND, P.O. BOX 6847, RIYADH T0 11452
Sherry Ann House officer: Chief Financial Officer 7373 GATEWAY BLVD,, NEWARK CA 94560
Peter Dore Rawlinson director, officer: CEO & Chief Technology Officer 7373 GATEWAY BLVD, NEWARK CA 94560
Gagan Dhingra officer: VP of Acctng & Internal Ctrl 50 HAWTHORNE ST, SAN FRANCISCO CA 94105
Chabi Nouri director C/O LUCID GROUP, INC., 7373 GATEWAY BLVD., NEWARK CA 94560
Sherif Marakby director 6061 FAIRBORN DR, CANTON MI 48187
Ori Winitzer director C/O LUCID GROUP, INC., 7373 GATEWAY BLVD., NEWARK CA 94560
Glenn R August director C/O OHA - 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036
Turqi A. Alnowaiser director, 10 percent owner C/O THE PUBLIC INVESTMENT FUND, P.O. BOX 6847, RIYADH T0 11452
Anthony L Posawatz director 8071 PINE FOREST CT, DAVISBURY MI 48350
Nichelle Maynard-elliott director PLATFORM SPECIALTY PRODUCTS CORPORATION, 383 MAIN AVENUE, NORWALK CT 06851
Janet S. Wong director 2510 LAKE FRONT CIRCLE, THE WOODLANDS TX 77380-1576