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NN (NNBR) Degree of Operating Leverage : 6.83 (As of Mar. 2025)


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What is NN Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NN's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NNBR's Degree of Operating Leverage is ranked worse than
80.66% of 548 companies
in the Conglomerates industry
Industry Median: 1.09 vs NNBR: 6.83

NN Degree of Operating Leverage Historical Data

The historical data trend for NN'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.

NN Degree of Operating Leverage Chart

NN 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 -31.44 -7.92 14.43 -54.66 4.85

NN 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 -29.38 -1.26 1.29 4.85 6.83

Competitive Comparison of NN's Degree of Operating Leverage

For the Conglomerates subindustry, NN'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.


NN's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, NN's Degree of Operating Leverage distribution charts can be found below:

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


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NN Degree of Operating Leverage Calculation

NN'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
=( -18.884 (Mar. 2025) / -36.939 (Mar. 2024) - 1 )/( 448.78 (Mar. 2025) / 483.38 (Mar. 2024) - 1 )
=-0.4888/-0.0716
=6.83***

* 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.


NN  (NAS:NNBR) 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.


NN Degree of Operating Leverage Related Terms

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


NN Business Description

Industry
Traded in Other Exchanges
Address
6210 Ardrey Kell Road, Suite 120, Charlotte, NC, USA, 28277
NN Inc is a diversified industrial company that combines engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision solutions and components. It operates in two business segments: mobile solutions and power solutions. The mobile solutions segment involves growth in the general industrial and automotive end markets. Its power solutions segment involves growth in the electrical and aerospace and defense end markets.
Executives
Rajeev Gautam director C/O HONEYWELL, 300 S. TRYON STREET, CHARLOTTE NC 28202
Timothy M. French officer: Chief Operating Officer 6210 ARDREY KELL ROAD, SUITE 600, CHARLOTTE NC 28277
Harold C Bevis officer: President and CEO 8537 SIX FORKS RD., SUITE 300, RALEIGH NC 27615
Jeri J Harman director
Corre Partners Management, Llc 10 percent owner 12 EAST 49TH STREET, SUITE 4003, NEW YORK NY 10017
Raynard D. Benvenuti director 6210 ARDREY KELL ROAD, CHARLOTTE NC 28277
Christina Carroll director 16529 ADLON ROAD, ENCINO CA 91436
Joao V Faria director 1000 EATON BLVD., CLEVELAND OH 44122
Wilson Thomas Hampton Jr. director PO BOX 807, 663 HWY 60, MONETT MO 65708
Shihab A. Kuran director 6210 ARDREY KELL ROAD, CHARLOTTE NC 28277
Corre Opportunities Qualified Master Fund, Lp 10 percent owner 12 EAST 49TH STREET, 40TH FLOOR, NEW YORK NY 10017
Warren A Veltman officer: SVP/GM Autocam Precision Comp. 2000 WATERS EDGE DRIVE, BUILDING C, SUITE 12, JOHNSON CITY TN 37604
Felcher, Jr. Michael C. officer: See Remarks 6210 ARDREY KELL ROAD, SUITE 600, CHARLOTTE NC 28277
Eric Hjalmar Soderlund 10 percent owner 12 EAST 49TH STREET 40TH FLOOR, NEW YORK NY 10017
Corre Partners Advisors Llc 10 percent owner 12 EAST 49TH STREET 40TH FLOOR, NEW YORK NY 10017