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NVFY (Nova Lifestyle) Degree of Operating Leverage : 2.96 (As of Mar. 2025)


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What is Nova Lifestyle Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nova Lifestyle's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.96. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NVFY's Degree of Operating Leverage is ranked worse than
66.27% of 424 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.305 vs NVFY: 2.96

Nova Lifestyle Degree of Operating Leverage Historical Data

The historical data trend for Nova Lifestyle'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.

Nova Lifestyle Degree of Operating Leverage Chart

Nova Lifestyle 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 -7.31 -8.03 215.12 4.38 1.65

Nova Lifestyle 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 -9.69 2.23 2.30 1.65 2.96

Competitive Comparison of Nova Lifestyle's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Nova Lifestyle'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.


Nova Lifestyle's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Nova Lifestyle's Degree of Operating Leverage distribution charts can be found below:

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


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Nova Lifestyle Degree of Operating Leverage Calculation

Nova Lifestyle'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
=( -4.233 (Mar. 2025) / -7.287 (Mar. 2024) - 1 )/( 9.947 (Mar. 2025) / 11.588 (Mar. 2024) - 1 )
=-0.4191/-0.1416
=2.96***

* 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.


Nova Lifestyle  (NAS:NVFY) 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.


Nova Lifestyle Degree of Operating Leverage Related Terms

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


Nova Lifestyle Business Description

Traded in Other Exchanges
N/A
Address
6565 East Washington Boulevard, Commerce, CA, USA, 90040
Nova Lifestyle Inc is a designer and lifestyle furniture company. It distributes and retails contemporary styled residential and commercial furniture. The firms marketing and sales platform offers retail as well as online selection and purchase fulfillment internationally. The company also sells managed a variety of bedding foundation components. Its collection of lifestyle furniture brands includes Diamond Sofa. The firm's products are made in the United States and Asia. Its customers mainly comprise distributors and retailers having specific geographic coverages that deploy middle to high-end private label home furnishings. The company operates in one business and industry segment: the design and sale of furniture.
Executives
Umesh Patel director 6565 E. WASHINGTON BLVD, C/O NOVA LIFESTYLE, INC., COMMERCE CA 90040
Min Su director, officer: Corporate Secretary C/O NOVA LIFESTYLE, INC., 6565 E WASHINGTON BLVD, COMMERCE CA 90040
Jeffrey Chuang officer: Chief Financial Officer C/O NOVA LIFESTYLE, INC., 6565 E. WASHINGTON BLVD, COMMERCE CA 90040
Steven Qiang Liu 10 percent owner 6541 E. WASHINGTON BLVD, C/O NOVA LIFESTYLE, INC., COMMERCE CA 90040
Yuen Ching Ho 10 percent owner, officer: Chief Financial Officer 6541 E. WASHINGTON BLVD, C/O NOVA LIFESTYLE, INC., COMMERCE CA 90040
Huy P La director 6565 E WASHINGTON BLVD, COMMERCE CA 90040
Joyal St. 10 percent owner 6565 E WASHINGTON BLVD #518, COMMERCE CA 90040
Ya Ming Wong director, 10 percent owner, officer: CEO and Chairman 6541 E. WASHINGTON BLVD, C/O NOVA LIFESTYLE, INC., COMMERCE CA 90040
Thanh H Lam director, officer: President 6541 E. WASHINGTON BLVD, C/O NOVA LIFESTYLE, INC., COMMERCE CA 90040
Peter M Kam director 6541 E WASHINGTON BLVD, COMMERCE CA 90040
Bin Liu director 40 WALL STREET, 58TH FLOOR, NEW YORK NY 10005
James R Talevich director 20202 WINDROW DR, LAKE FOREST CA 92630
Michael J Viotto director 444 E. HUNTINGTON DR., SUITE 105, ARCADIA CA 91006
Chung Shing Yam director 6541 E WASHINGTON BLVD, COMMERCE CA 90040
Alex Li director, 10 percent owner, officer: President & CEO NO. 6 JIEFANGNAN LU, HEXI DISTRICT, TIANJIN F4 30000

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