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Ferrari NV (LTS:0RDT) Degree of Operating Leverage : 1.57 (As of Mar. 2025)


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What is Ferrari NV Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ferrari NV's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.57. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LTS:0RDT's Degree of Operating Leverage is ranked worse than
56.91% of 1288 companies
in the Vehicles & Parts industry
Industry Median: 1.08 vs LTS:0RDT: 1.57

Ferrari NV Degree of Operating Leverage Historical Data

The historical data trend for Ferrari NV'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.

Ferrari NV Degree of Operating Leverage Chart

Ferrari NV 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 2.74 2.07 0.67 2.07 1.54

Ferrari NV 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 2.27 2.04 2.18 1.54 1.57

Competitive Comparison of Ferrari NV's Degree of Operating Leverage

For the Auto Manufacturers subindustry, Ferrari NV'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.


Ferrari NV's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

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

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


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Ferrari NV Degree of Operating Leverage Calculation

Ferrari NV'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
=( 2021.038 (Mar. 2025) / 1691.758 (Mar. 2024) - 1 )/( 6882.789 (Mar. 2025) / 6125.769 (Mar. 2024) - 1 )
=0.1946/0.1236
=1.57***

* 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.


Ferrari NV  (LTS:0RDT) 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.


Ferrari NV Degree of Operating Leverage Related Terms

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Ferrari NV Business Description

Address
Via Abetone Inferiore n. 4, Maranello, ITA, I-41053
Ferrari designs, engineers, and manufactures some of the world's most expensive luxury cars. With supply carefully controlled to be below demand and a brand steeped in decades of motor racing history, a Ferrari is viewed as a status symbol. In 2024, the company sold 13,752 vehicles at an average price over EUR 480,000 with more than 70% of its vehicles being sold to existing Ferrari clients. Eighty-six percent of revenue is generated from the sale of cars and spare parts and 10% from sponsorship, commercial, and brand activities including racing and lifestyle activities. In 2024, the Europe, Middle East, and Africa region accounted for 47% of revenue, the Americas was 33%, mainland China, Hong Kong, and Taiwan was 8%, and the rest of Asia was 12%.

Ferrari NV Headlines

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