GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Avio SpA (MIL:AVIO) » Definitions » Degree of Operating Leverage

Avio SpA (MIL:AVIO) Degree of Operating Leverage : 0.02 (As of Dec. 2024)


View and export this data going back to 2015. Start your Free Trial

What is Avio SpA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Avio SpA's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MIL:AVIO's Degree of Operating Leverage is ranked better than
64.29% of 308 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs MIL:AVIO: 0.02

Avio SpA Degree of Operating Leverage Historical Data

The historical data trend for Avio SpA'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.

Avio SpA Degree of Operating Leverage Chart

Avio SpA 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 1.22 -0.17 0.83 -4.37 0.02

Avio SpA Semi-Annual Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 0.83 -0.12 -4.37 0.47 0.02

Competitive Comparison of Avio SpA's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Avio SpA'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.


Avio SpA's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Avio SpA's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Avio SpA Degree of Operating Leverage Calculation

Avio SpA's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 8.391 (Dec. 2024) / 7.334 (Dec. 2023) - 1 )/( 312.814 (Dec. 2024) / 35.764 (Dec. 2023) - 1 )
=0.1441/7.7466
=0.02***

* 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.


Avio SpA  (MIL:AVIO) 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.


Avio SpA Degree of Operating Leverage Related Terms

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


Avio SpA Business Description

Industry
Traded in Other Exchanges
Address
Via Latina, snc (SP 600 Ariana Km 5,2), Colleferro, Rome, ITA, 00034
Avio SpA is an international group engaged in the construction and development of space launchers. The company's core operations are design, development and production of solid and liquid propellant propulsion systems for space launchers; design, development and production of solid propellant propulsion systems for tactical missiles; development, integration and supply of complete light space launchers (VEGA); research and development of new low environmental impact propulsion systems and of satellite tracking control engines. The Group mainly operates in EU countries (Italy, France), the USA, and French Guiana.

Avio SpA Headlines

No Headlines