GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Emerson Radio Corp (AMEX:MSN) » Definitions » Degree of Operating Leverage

MSN (Emerson Radio) Degree of Operating Leverage : -3.72 (As of Dec. 2024)


View and export this data going back to 1994. Start your Free Trial

What is Emerson Radio Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Emerson Radio's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -3.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MSN's Degree of Operating Leverage is ranked better than
79.49% of 2418 companies
in the Hardware industry
Industry Median: 1.01 vs MSN: -3.72

Emerson Radio Degree of Operating Leverage Historical Data

The historical data trend for Emerson Radio'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.

Emerson Radio Degree of Operating Leverage Chart

Emerson Radio Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.27 0.17 -0.87 5.00 -6.21

Emerson Radio Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 -1.92 -6.21 -7.47 -4.86 -3.72

Competitive Comparison of Emerson Radio's Degree of Operating Leverage

For the Consumer Electronics subindustry, Emerson Radio'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.


Emerson Radio's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


;
;

Emerson Radio Degree of Operating Leverage Calculation

Emerson Radio'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
=( 0.038 (Dec. 2024) / -1.704 (Dec. 2023) - 1 )/( 11.14 (Dec. 2024) / 8.74 (Dec. 2023) - 1 )
=-1.0223/0.2746
=-3.72***

* 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.


Emerson Radio  (AMEX:MSN) 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.


Emerson Radio Degree of Operating Leverage Related Terms

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


Emerson Radio Business Description

Industry
Traded in Other Exchanges
N/A
Address
959 Route 46 East, Suite 210, Parsippany, NJ, USA, 07054
Emerson Radio Corp operates in the consumer electronics industry. The company designs, sources, imports, and markets a variety of houseware and consumer electronic products, and licenses the Emerson trademark domestically and internationally. Its products are offered to encompass televisions, digital versatile disc players and video cassette recorders, audio accessories, microwave ovens, home theatres, high-end audio products, office products, mobile stereo, and wireless products. geographically, it derives a majority of its revenue from the United States.
Executives
Richard Li officer: Chief Financial Officer C/O EMERSON RADIO CORP., 35 WATERVIEW BLVD., SUITE 140, PARSIPPANY NJ 07054
Omen Charm Ltd 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Bingzhao Tan 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Guichai He 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Ocean Rose Global Ltd 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Wealth Warrior Global Ltd 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Praisewise Ltd 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Merchant Link Holdings Ltd 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Splendid Brilliance (ptc) Ltd 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Aurizon Enterprises Ltd 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Rise Vision Global Ltd director, 10 percent owner UNIT C, 32/F., TML TOWER, NO. 3 HOI SHING ROAD, TSUEN WAN, NEW TERRITORIES K3 NO ZIP
Ho Wing On Christopher director 146 ROBINSON ROAD, #01-01, SINGAPORE U0 068909
Kin S Yuen director C/O EMERSON RADIO CORP., 3 UNIVERSITY PLAZA, SUITE 405, HACKENSACK NJ 07601
Ho Family Trust 10 percent owner 146 ROBINSON ROAD, #01-01, SINGAPORE U0 068909
John Howard Batchelor director C/O EMERSON RADIO CORP., 3 UNIVERSITY PLAZA, SUITE 405, HACKENSACK NJ 07601

Emerson Radio Headlines

From GuruFocus

Emerson Radio Corp Reports Operating Results (10-K)

By gurufocus 10qk 07-14-2010

Emerson Radio Corp Reports Operating Results (10-Q)

By gurufocus 10qk 11-15-2010

Emerson Radio Corp Reports Operating Results (10-Q)

By gurufocus 10qk 11-12-2009

A Net Net Stock Trading at 10% of Book

By Rupert Hargreaves Rupert Hargreaves 08-30-2017

A Stock Where Neither the Business nor the Price Matters

By Geoff Gannon Geoff Gannon 04-18-2012

Emerson Radio Corp Reports Operating Results (10-Q)

By gurufocus 10qk 08-16-2010

5 More Deep-Value Stocks for 2020

By Rupert Hargreaves Rupert Hargreaves 01-06-2020