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MPTI (M-Tron Industries) Degree of Operating Leverage : 4.57 (As of Mar. 2025)


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What is M-Tron Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. M-Tron Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.57. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for M-Tron Industries's Degree of Operating Leverage or its related term are showing as below:

MPTI's Degree of Operating Leverage is ranked worse than
77.4% of 2420 companies
in the Hardware industry
Industry Median: 1.02 vs MPTI: 4.57

M-Tron Industries Degree of Operating Leverage Historical Data

The historical data trend for M-Tron Industries'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.

M-Tron Industries Degree of Operating Leverage Chart

M-Tron Industries Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 2.61 1.77 1.74 6.22

M-Tron Industries Quarterly Data
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 3.17 2.50 1.49 6.22 4.57

Competitive Comparison of M-Tron Industries's Degree of Operating Leverage

For the Electronic Components subindustry, M-Tron Industries'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.


M-Tron Industries's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, M-Tron Industries's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where M-Tron Industries's Degree of Operating Leverage falls into.


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M-Tron Industries Degree of Operating Leverage Calculation

M-Tron Industries'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
=( 9.618 (Mar. 2025) / 5.327 (Mar. 2024) - 1 )/( 50.559 (Mar. 2025) / 42.986 (Mar. 2024) - 1 )
=0.8055/0.1762
=4.57***

* 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.


M-Tron Industries  (AMEX:MPTI) 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.


M-Tron Industries Degree of Operating Leverage Related Terms

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


M-Tron Industries Business Description

Traded in Other Exchanges
N/A
Address
2525 Shader Road, Orlando, FL, USA, 32804
M-Tron Industries Inc is a diversified holding company with subsidiaries engaged in designing, manufacturing, and marketing high-engineered, high-reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits in various applications. The company's serving markets are aerospace and defense, space, and avionics. The company offers products such as microwave and millimeter wave filters; cavity, crystal, ceramic, lumped element, and switched filters; crystal resonators, integrated microwave assemblies, and solid-state power amplifier products.
Executives
Mario J Gabelli 10 percent owner 191 MASON STREET, GREENWICH CT 06830
Ivan Arteaga director 497 EISENHOWER COURT, WYCKOFF NJ 07481
William Arnold Drafts officer: President 746 CRISTALDI WAY, LONGWOOD FL 32779
Ferrantino Michael J Jr director, officer: Chief Executive Officer 12 MARTINGALE LANE, ANDOVER MA 01810
James William Tivy officer: Chief Financial Officer 220 E. CENTRAL PARKWAY, SUITE 2060, ALTAMONTE SPRINGS FL 32701
Linda M Biles officer: VP, Controller 2525 SHADER ROAD, ORLANDO FL 32804
Marc Gabelli director, 10 percent owner 401 THEODORE FREMD AVE, RYE NY 10580
Bel Lazar director 4705 S. APOPKA VINELAND ROAD, SUITE 201, ORLANDO FL 32819
Hendi Susanto director 2525 SHADER RD., ORLANDO FL 32804
Lapenta Robert V Jr director C/O ASTON CAPITAL, 177 BROAD ST., 12TH FLOOR, STAMFORD CT 06901
David M Goldman director ONE CORPORATE CENTER, RYE NY 10580
John S Mega director C/O L-3 COMMUNICATIONS CORPORATION, 600 THIRD AVENUE, NEW YORK NY 10016