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Turbo Power Systems (LSE:TPS) Degree of Operating Leverage : 0.00 (As of Jun. 2017)


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What is Turbo Power Systems Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Turbo Power Systems's Degree of Operating Leverage for the quarter that ended in Jun. 2017 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LSE:TPS's Degree of Operating Leverage is not ranked *
in the Industrial Products industry.
Industry Median: 1.1
* Ranked among companies with meaningful Degree of Operating Leverage only.

Turbo Power Systems Degree of Operating Leverage Historical Data

The historical data trend for Turbo Power Systems'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.

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Turbo Power Systems Degree of Operating Leverage Chart

Turbo Power Systems Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Degree of Operating Leverage
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Turbo Power Systems Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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Competitive Comparison of Turbo Power Systems's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Turbo Power Systems'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.


Turbo Power Systems's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Turbo Power Systems's Degree of Operating Leverage distribution charts can be found below:

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


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Turbo Power Systems Degree of Operating Leverage Calculation

Turbo Power Systems's Degree of Operating Leverage for the quarter that ended in Jun. 2017 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -1.251 (Jun. 2017) / -0.458 (Jun. 2016) - 1 )/( 12.638 (Jun. 2017) / 12.301 (Jun. 2016) - 1 )
=1.7314/0.0274
=63.20***

* 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.


Turbo Power Systems  (LSE:TPS) 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.


Turbo Power Systems Degree of Operating Leverage Related Terms

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Turbo Power Systems Business Description

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Turbo Power Systems Inc was incorporated on March 23, 1987. The Company designs and manufactures high-speed electric motors, generators and power electronics systems and provides bespoke solutions to transport, industrial, energy conversion, and military markets The Company conducts operations through its wholly owned subsidiary company, Turbo Power Systems Limited.

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