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LGL (LGL Group) Degree of Operating Leverage : -1.32 (As of Mar. 2025)


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What is LGL Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. LGL Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.32. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LGL's Degree of Operating Leverage is ranked better than
71.16% of 2413 companies
in the Hardware industry
Industry Median: 1 vs LGL: -1.32

LGL Group Degree of Operating Leverage Historical Data

The historical data trend for LGL 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.

LGL Group Degree of Operating Leverage Chart

LGL Group 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 26.80 3.78 -0.31 0.47 -4.31

LGL Group 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 0.40 0.40 0.30 -4.31 -1.32

Competitive Comparison of LGL Group's Degree of Operating Leverage

For the Scientific & Technical Instruments subindustry, LGL 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.


LGL Group's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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LGL Group Degree of Operating Leverage Calculation

LGL 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
=( 0.124 (Mar. 2025) / 0.157 (Mar. 2024) - 1 )/( 3.785 (Mar. 2025) / 3.264 (Mar. 2024) - 1 )
=-0.2102/0.1596
=-1.32***

* 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.


LGL Group  (AMEX:LGL) 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.


LGL Group Degree of Operating Leverage Related Terms

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


LGL Group Business Description

Industry
Traded in Other Exchanges
N/A
Address
2525 Shader Road, Orlando, FL, USA, 32804
LGL Group Inc is a holding company engaged in services, merchant investment and manufacturing business activities. The company has two reportable segments; Electronic Instruments and Merchant Investment. The Electronic Instruments segment, which generates key revenue, is focused on designing and manufacturing high-performance Frequency and Time reference standards that form the basis for timing and synchronization in various applications including satellite communication, time transfer systems, network synchronization, electricity distribution, and metrology. The Merchant Investment segment comprises various investment vehicles in which the company invests its capital.
Executives
Herve Francois director 4 BRIDLE PATH, LAWRENCEVILLE NJ 08648
Darlene T Deremer director 200 CENTRAL AVENUE, SUITE 1850, ST. PETERSBURG FL 33701
Linda M Biles officer: VP, Controller 2525 SHADER ROAD, ORLANDO FL 32804
James William Tivy officer: Chief Financial Officer 220 E. CENTRAL PARKWAY, SUITE 2060, ALTAMONTE SPRINGS FL 32701
Bel Lazar director 4705 S. APOPKA VINELAND ROAD, SUITE 201, ORLANDO FL 32819
Ferrantino Michael J Jr director 12 MARTINGALE LANE, ANDOVER MA 01810
Ivan Arteaga director, officer: CEO 497 EISENHOWER COURT, WYCKOFF NJ 07481
John S Mega director C/O L-3 COMMUNICATIONS CORPORATION, 600 THIRD AVENUE, NEW YORK NY 10016
Lapenta Robert V Jr director C/O ASTON CAPITAL, 177 BROAD ST., 12TH FLOOR, STAMFORD CT 06901
Mario J Gabelli director, 10 percent owner 191 MASON STREET, GREENWICH CT 06830
Joan Atkinson officer: CAO 100 FIRST STAMFORD PLACE, STAMFORD CT 06907
Patrick Huvane officer: Senior Vice President 780 THIRD AVENUE, 21ST FLOOR, NEW YORK NY 10017
Michael J Ferrantino director
Hendi Susanto director 2525 SHADER RD., ORLANDO FL 32804
Salerno Frederic V Jr director 2525 SHADER RD., ORLANDO FL 32804

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