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LTEC (LOUD Technologies) Degree of Operating Leverage : 0.00 (As of Sep. 2008)


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What is LOUD Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. LOUD Technologies's Degree of Operating Leverage for the quarter that ended in Sep. 2008 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LTEC's Degree of Operating Leverage is not ranked *
in the Hardware industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Operating Leverage only.

LOUD Technologies Degree of Operating Leverage Historical Data

The historical data trend for LOUD Technologies'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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LOUD Technologies Degree of Operating Leverage Chart

LOUD Technologies Annual Data
Trend Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07
Degree of Operating Leverage
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LOUD Technologies Quarterly Data
Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08
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Competitive Comparison of LOUD Technologies's Degree of Operating Leverage

For the Consumer Electronics subindustry, LOUD Technologies'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.


LOUD Technologies's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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LOUD Technologies Degree of Operating Leverage Calculation

LOUD Technologies's Degree of Operating Leverage for the quarter that ended in Sep. 2008 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -14.325 (Sep. 2008) / 3.258 (Sep. 2007) - 1 )/( 209.61 (Sep. 2008) / 204.107 (Sep. 2007) - 1 )
=-5.3969/0.027
=-200.17***

* 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.


LOUD Technologies  (OTCPK:LTEC) 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.


LOUD Technologies Degree of Operating Leverage Related Terms

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LOUD Technologies Business Description

Traded in Other Exchanges
N/A
Address
16220 Wood-Red Road, N.E., Woodinville, WA, USA, 98072
LOUD Technologies Inc is a professional audio and music products company. Its brand includes Mackie, Blackheart, Crate and TAPCO. The company engineers, markets and distributes a wide range of professional audio and musical instrument products worldwide. The company's brands' products lend impact to expressions of sport, politics, faith and the performing arts, and are found in every possible venue worldwide.
Executives
Marc J Leder 10 percent owner 5200 TOWN CENTER CIRCLE, SUITE 600, BOCA RATON FL 33486
Rodger R Krouse 10 percent owner 5200 TOWN CENTER CIRCLE, SUITE 600, BOCA RATON FL 33486
Jason H Neimark director C/O SUN CAPITAL PARTNERS, INC., 5200 TOWN CENTER CIRCLE, SUITE 600, BOCA RATON FL 33486
Jon W Gacek director 16220 WOOD-RED ROAD, WOODINVILLE WA 98072
Thomas Scott King director 7289 SACRIMENTO PLACE, ., DEL RAY BEACH FL 33446
David M Tully 10 percent owner 225 NW OLYMPUS DR, ISSAGUAH WA 98027

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