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OPTT (Ocean Power Technologies) Degree of Operating Leverage : -1.40 (As of Jan. 2025)


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What is Ocean Power Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ocean Power Technologies's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was -1.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OPTT's Degree of Operating Leverage is ranked better than
76.65% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs OPTT: -1.40

Ocean Power Technologies Degree of Operating Leverage Historical Data

The historical data trend for Ocean Power Technologies'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.

Ocean Power Technologies Degree of Operating Leverage Chart

Ocean Power Technologies Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.09 -0.69 1.29 0.54 0.05

Ocean Power Technologies 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 0.27 0.05 -0.15 -0.30 -1.40

Competitive Comparison of Ocean Power Technologies's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Ocean Power Technologies'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.


Ocean Power Technologies's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ocean Power Technologies's Degree of Operating Leverage distribution charts can be found below:

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


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Ocean Power Technologies Degree of Operating Leverage Calculation

Ocean Power Technologies'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
=( -20.982 (Jan. 2025) / -31.613 (Jan. 2024) - 1 )/( 6.116 (Jan. 2025) / 4.933 (Jan. 2024) - 1 )
=-0.3363/0.2398
=-1.40***

* 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.


Ocean Power Technologies  (AMEX:OPTT) 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.


Ocean Power Technologies Degree of Operating Leverage Related Terms

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


Ocean Power Technologies Business Description

Traded in Other Exchanges
Address
28 Engelhard Drive, Suite B, Monroe Township, NJ, USA, 08831
Ocean Power Technologies Inc provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. It provides ocean data collection and reporting, marine power, offshore communications, and Maritime Domain Awareness System (MDAS) products, integrated solutions, and consulting services. The company offers its products and services to a wide range of customers, including those in government and offshore energy, oil and gas, construction, wind power, and other industries. The company has operations in North and South America, Europe, Asia and Australia.
Executives
Peter E. Slaiby director 28 ENGELHARD DRIVE,, SUITE B, MONROE TOWNSHIP NJ 08831
Terence James Cryan director 2 HAMPSHIRE RD, BRONXVILLE NY 10708
Robert Patrick Powers officer: Senior VP and CFO 968 ALBANY SHAKER ROAD, LATHAM NY 12110
Philipp Stratmann officer: President and CEO 28 ENGELHARD DRIVE, SUITE B, MONROE TOWNSHIP NJ 08831
Lorenz Anderson Natalie M. director 28 ENGELHARD DRIVE, SUITE B, MONROE TOWNSHIP NJ 08831
Joseph Dipietro officer: Controller and Treasurer 28 ENGELHARD DRIVE, SUITE B, MONROE TOWNSHIP NJ 08831
Robert K Winters director 280 6TH AVENUE, BROOKLYN NY 11215
Diana G Purcel director C/O FAMOUS DVES OF AMERICA INC, 8091 WALLACE ROAD, EDEN PRAIRIE MN 55344
Clyde W Hewlett director 28, ENGLAND DRIVE, SUITE B, MONROE TOWNSHIP NJ 08831
Kirby George H Iii director, officer: President, CEO, and Director 28 ENGELHARD DRIVE, MONROE TOWNSHIP NJ 08831
Dean J Glover director C/O GLOBAL POWER EQUIPMENT GROUP INC., 5199 N. MINGO ROAD, TULSA OK 74117
Kristine S Moore director 28 ENGELHARD DRIVE, PENNINGTON NJ 08831
Steven M Fludder director 264 NANTASKET ROAD, HULL MA 02045
Christopher Phebus officer: Vice President - Engineering 28 ENGELHARD DRIVE, MONOROE TOWNSHIP NJ 08831
Matthew T Shafer officer: CFO and Treasurer 1590 REED ROAD, PENNINGTON NJ 08534