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Husqvarna AB (OSTO:HUSQ B) Degree of Operating Leverage : 0.46 (As of Sep. 2024)


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What is Husqvarna AB Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Husqvarna AB's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OSTO:HUSQ B's Degree of Operating Leverage is ranked better than
63.33% of 2926 companies
in the Industrial Products industry
Industry Median: 1.23 vs OSTO:HUSQ B: 0.46

Husqvarna AB Degree of Operating Leverage Historical Data

The historical data trend for Husqvarna AB'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.

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Husqvarna AB Degree of Operating Leverage Chart

Husqvarna AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.16 -0.66 4.71 -3.19 -20.67

Husqvarna AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -5.54 -20.67 -0.94 -0.04 0.46

Competitive Comparison of Husqvarna AB's Degree of Operating Leverage

For the Tools & Accessories subindustry, Husqvarna AB'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.


Husqvarna AB's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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



Husqvarna AB Degree of Operating Leverage Calculation

Husqvarna AB's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2937 (Sep. 2024) / 3107 (Sep. 2023) - 1 )/( 48493 (Sep. 2024) / 55008 (Sep. 2023) - 1 )
=-0.0547/-0.1184
=0.46***

* 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.


Husqvarna AB  (OSTO:HUSQ B) 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.


Husqvarna AB Degree of Operating Leverage Related Terms

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Husqvarna AB Business Description

Address
Regeringsgatan 28, Box 7454, Stockholm, SWE, SE-111 53
Husqvarna AB makes outdoor power products for forest, park, and garden care. The company operates three business segments: Husqvarna, Gardena, and Construction. The Husqvarna segment generates most of the group's revenue. It manufactures and sells outdoor products such as chainsaws, trimmers, mowers, and park and garden care. The other segments offer garden watering and hand tools, as well as professional equipment and diamond tools for cutting and drilling in concrete, stone, and asphalt. Products are sold under the Husqvarna, Gardena, McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah, and Diamant Boart brands. The company's largest end markets are North America and Europe.

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