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LCII (LCI Industries) Degree of Operating Leverage : 43.61 (As of Mar. 2025)


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What is LCI Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. LCI Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 43.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LCII's Degree of Operating Leverage is ranked worse than
95.41% of 1285 companies
in the Vehicles & Parts industry
Industry Median: 1.06 vs LCII: 43.61

LCI Industries Degree of Operating Leverage Historical Data

The historical data trend for LCI Industries'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.

LCI Industries Degree of Operating Leverage Chart

LCI Industries Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.63 1.31 2.36 2.84 -66.68

LCI Industries Quarterly Data
Jun20 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 Premium Member Only 2.81 -8.35 -63.68 -66.68 43.61

Competitive Comparison of LCI Industries's Degree of Operating Leverage

For the Recreational Vehicles subindustry, LCI Industries'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.


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

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

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


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LCI Industries Degree of Operating Leverage Calculation

LCI Industries'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
=( 233.89 (Mar. 2025) / 160.996 (Mar. 2024) - 1 )/( 3818.769 (Mar. 2025) / 3779.527 (Mar. 2024) - 1 )
=0.4528/0.0104
=43.61***

* 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.


LCI Industries  (NYSE:LCII) 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.


LCI Industries Degree of Operating Leverage Related Terms

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


LCI Industries Business Description

Traded in Other Exchanges
Address
3501 County Road 6 East, Elkhart, IN, USA, 46514
LCI Industries Inc supplies domestically and internationally components for the original equipment manufacturers of recreational vehicles and adjacent industries including buses; and trailers used to haul boats, livestock, equipment, and other cargo. It has two reportable segments; the original equipment manufacturers segment and the aftermarket segment. The OEM Segment manufactures or distributes components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products are sold to manufacturers of RVs such as Thor Industries, Forest River, Winnebago, and other RV OEMs, and to manufacturers in adjacent industries.
Executives
Jason Lippert director, officer: Chief Executive Officer C/O LIPPERT COMPONENTS INC, 2375 TAMIAMI TRAIL NORTH STE 11, NAPLES FL 34103
Brendan Deely director USG CORPORATION, 125 SOUTH FRANKLIN STREET, CHICAGO IL 60606
Linda Kristine Myers director 3556 LAKE SHORE ROAD, P.O. BOX 2028, BUFFALO NY 14219
Stephanie K. Mains director C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Lillian Etzkorn officer: EVP & CFO 1570 FOREST LANE, BLOOMFIELD HILLS MI 48301
Eileen S Pruitt officer: Deputy CHRO C/O LCI INDUSTRIES, 3501 COUNTRY ROAD 6 EAST, ELKHART IN 46514
Nick C Fletcher officer: CHIEF HUMAN RESOURCES OFFICER 3305 HIDDEN SPRINGS LANE, PROSPECT KY 40059
James Gero director C/O ORTHOFIX INTERNATIONAL, 3451 PLANO PARKWAY, LEWISVILLE TX 75056
Kieran M O'sullivan director 2375 CABOT DRIVE, LISLE IL 60532
Jamie Schnur officer: Chief Administrative Officer C/O LIPPERT COMPONENTS, 2703 COLLEGE AVENUE, GOSHEN IN 46526
Ryan Richard Smith officer: Group President - N.A. C/O LCI INDUSTRIES, 3501 COUNTY ROAD 6 EAST, ELKHART IN 46514
David A Reed director TEXAS INDUSTRIES INC, 1341 W MOCKINGBIRD LN, DALLAS TX 75247
Ronald Fenech director 419 WEST PIKE STREET, JACKSON CENTER OH 45334
John A. Sirpilla director C/O LCI INDUSTRIES, 3501, ELKHART IN 46514
Scott T Mereness officer: President C/O LIPPERT COMPONENTS, INC., 2766 COLLEGE AVENUE, GOSHEN IN 46528