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NOBH (Nobility Homes) Degree of Operating Leverage : 1.33 (As of Jan. 2025)


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What is Nobility Homes Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nobility Homes's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 1.33. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NOBH's Degree of Operating Leverage is ranked worse than
58.06% of 93 companies
in the Homebuilding & Construction industry
Industry Median: 1.13 vs NOBH: 1.33

Nobility Homes Degree of Operating Leverage Historical Data

The historical data trend for Nobility Homes'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.

Nobility Homes Degree of Operating Leverage Chart

Nobility Homes Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.36 -1.69 2.59 2.58 1.58

Nobility Homes Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 2.29 1.33 1.72 1.58 1.33

Competitive Comparison of Nobility Homes's Degree of Operating Leverage

For the Residential Construction subindustry, Nobility Homes'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.


Nobility Homes's Degree of Operating Leverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Nobility Homes's Degree of Operating Leverage distribution charts can be found below:

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


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Nobility Homes Degree of Operating Leverage Calculation

Nobility Homes's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 9.174 (Jan. 2025) / 12.267 (Jan. 2024) - 1 )/( 49.407 (Jan. 2025) / 60.922 (Jan. 2024) - 1 )
=-0.2521/-0.189
=1.33***

* 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.


Nobility Homes  (OTCPK:NOBH) 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.


Nobility Homes Degree of Operating Leverage Related Terms

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


Nobility Homes Business Description

Traded in Other Exchanges
N/A
Address
3741 South West 7th Street, Ocala, FL, USA, 34474
Nobility Homes Inc focuses on designing, manufacturing, and selling manufactured and modular homes through its own retail sales centers across Florida. It also sells its manufactured homes on a wholesale basis to independent manufactured home retail dealers and manufactured home communities. The company's homes are sold as unfurnished dwellings ready for permanent occupancy. The company recognizes revenue from retail sales of new manufactured homes, the sale of the repurchased homes upon transfer of title to the new purchaser, and revenues from its independent dealers.
Executives
Terry Earl Trexler director, 10 percent owner, officer: President and CEO P O BOX 240, JACKSONVILLE FL 32201
Terry E. Trexler Revocable Trust 10 percent owner 3741 S.W. 7TH STREET, OCALA FL 34474
Thomas W Trexler director, officer: Executive Vice President
Terry E. Trexler Irrevocable Trust 10 percent owner 222 SOUTH PENNSYLVANIA AVE., SUITE 200, WINTER PARK FL 32789
Kay Charlton 10 percent owner 222 SOUTH PENNSYLVANIA AVE., SUITE 200, WINTER PARK FL 32789
Lynn J Cramer officer: Treasurer (Chief Acctg. Off.)
Jean Etheredge officer: Secretary
Edward C Sims officer: Vice President