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OMTK (OmniTek Engineering) Degree of Operating Leverage : -6.75 (As of Mar. 2025)


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What is OmniTek Engineering Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. OmniTek Engineering's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -6.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OMTK's Degree of Operating Leverage is ranked better than
85.88% of 1289 companies
in the Vehicles & Parts industry
Industry Median: 1.02 vs OMTK: -6.75

OmniTek Engineering Degree of Operating Leverage Historical Data

The historical data trend for OmniTek Engineering'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.

OmniTek Engineering Degree of Operating Leverage Chart

OmniTek Engineering 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 3.64 -4.32 208.95 -6.97 7.06

OmniTek Engineering 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 7.68 19.02 7.93 7.06 -6.75

Competitive Comparison of OmniTek Engineering's Degree of Operating Leverage

For the Auto Parts subindustry, OmniTek Engineering'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.


OmniTek Engineering's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, OmniTek Engineering's Degree of Operating Leverage distribution charts can be found below:

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


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OmniTek Engineering Degree of Operating Leverage Calculation

OmniTek Engineering'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
=( -0.104 (Mar. 2025) / -0.198 (Mar. 2024) - 1 )/( 1.142 (Mar. 2025) / 1.067 (Mar. 2024) - 1 )
=-0.4747/0.0703
=-6.75***

* 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.


OmniTek Engineering  (OTCPK:OMTK) 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.


OmniTek Engineering Degree of Operating Leverage Related Terms

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OmniTek Engineering Business Description

Traded in Other Exchanges
N/A
Address
1345 Specialty Drive, No. E, Vista, CA, USA, 92081
OmniTek Engineering Corp is a developer or manufacturer of patented hotwires spark plug wires. It develops and sells proprietary diesel-to-natural gas engine conversion systems and complementary products, including new natural gas engines that utilize the company's technology. Omnitek products are available for stationary applications in the transportation industry, which includes light commercial vehicles, minibuses, heavy-duty trucks, municipal buses, as well as rail and marine applications.
Executives
Gary S Maier director 815 MORAGA DRIVE, SUITE 306, LOS ANGELES CA 90049
John M Palumbo director
Werner Funk director, 10 percent owner, officer: President, CEO and Secretary 1345 SPECIALTY DR., #E, VISTA CA 92081
Richard L Miller officer: CFO 1333 KEYSTONE WAY, #101, VISTA CA 92081
Janice M Quigley director, officer: Vice President 15-2819 INA STREET, PAHOA HI 96778
Alicia A Rolfe officer: CFO 1333 KEYSTONE WAY, #101, VISTA CA 92081
George G Chachas director
John D Garber 10 percent owner 7506 N BROADWAY EXTN, STE 505, OKLAHOMA CITY OK 73116