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PKE (Park Aerospace) Degree of Operating Leverage : 1.13 (As of Feb. 2025)


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What is Park Aerospace Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Park Aerospace's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 1.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PKE's Degree of Operating Leverage is ranked worse than
52.9% of 310 companies
in the Aerospace & Defense industry
Industry Median: 1.03 vs PKE: 1.13

Park Aerospace Degree of Operating Leverage Historical Data

The historical data trend for Park Aerospace'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.

Park Aerospace Degree of Operating Leverage Chart

Park Aerospace Annual Data
Trend Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.49 4.11 -16.50 -4.39 1.13

Park Aerospace Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 -4.39 3.58 -1.71 0.88 1.13

Competitive Comparison of Park Aerospace's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Park Aerospace'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.


Park Aerospace's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Park Aerospace's Degree of Operating Leverage distribution charts can be found below:

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


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Park Aerospace Degree of Operating Leverage Calculation

Park Aerospace's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 9.396 (Feb. 2025) / 8.38 (Feb. 2024) - 1 )/( 62.026 (Feb. 2025) / 56.004 (Feb. 2024) - 1 )
=0.1212/0.1075
=1.13***

* 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.


Park Aerospace  (NYSE:PKE) 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.


Park Aerospace Degree of Operating Leverage Related Terms

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


Park Aerospace Business Description

Traded in Other Exchanges
Address
1400 Old Country Road, Suite 409N, Westbury, New York, NY, USA, 11590
Park Aerospace Corp designs develop and manufactures engineered, advanced composite materials and composite structures and assemblies and low-volume tooling for the aerospace markets and prototype tooling for such structures and assemblies. Geographically, the company derives a majority of revenue from North America and also has a presence in a company operates its business in Asia and Europe. It offers advanced composite Prepregs for Aircraft Structures and Interiors, Sigma Strut and Alpha Strut.
Executives
Mark A Esquivel officer: Vice President - Aerospace 48 SOUTH SERVICE ROAD, MELVILLE NY 11747
Shane Connor director 10510 SPRINGBORO PIKE, MIAMISBURG OH 45342
Nickel Cory officer: Sr VP and General Manager 816 N. BLAINE ST., NEWTON KS 67114
Dale Blanchfield director 128 HAWTHORNE ROAD, HOPKINS MN 55343
D. Bradley Thress director 250 WEST SPRING STREET, UNIT 615, COLUMBUS OH 43215
Brian E Shore director, officer: President and CEO
Emily J Groehl officer: Sr. VP, Sales and Marketing
Yvonne Julian director 225 HIDDEN HILLS DRIVE, GREENVILLE SC 29605
Steven T Warshaw director
Stephen E Gilhuley officer: Senior Vice President, Secreta
P. Matthew Farabaugh officer: Vice President and Controller PARK ELECTROCHEMICAL CORP., 48 SOUTH SERVICE ROAD, SUITE 300, MELVILLE X1 11747
Benjamin Wykoff Shore officer: Senior Vice President 31 HARBOR PARK DRIVE, CENTERPORT NY 11721
Robert J Yaniro officer: VP and Corporate Controller 48 SOUTH SERVICE ROAD, MELVILLE NY 11747
Carl William Smith director 10044 E. NACOMA CT., SUN LAKE AZ 85248
Christopher T. Mastrogiacomo officer: V P of Strategic Marketing 48 SOUTH SERVICE ROAD, SUITE 300, MELVILLE NY 11747