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PSIX (Power Solutions International) Degree of Operating Leverage : 5.92 (As of Mar. 2025)


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What is Power Solutions International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Power Solutions International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PSIX's Degree of Operating Leverage is ranked worse than
82.02% of 2926 companies
in the Industrial Products industry
Industry Median: 1.1 vs PSIX: 5.92

Power Solutions International Degree of Operating Leverage Historical Data

The historical data trend for Power Solutions International'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.

Power Solutions International Degree of Operating Leverage Chart

Power Solutions International 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 9.65 10.61 -28.96 -17.21 22.80

Power Solutions International 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 -3.35 -3.23 -4.49 22.80 5.92

Competitive Comparison of Power Solutions International's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Power Solutions International'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.


Power Solutions International's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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


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Power Solutions International Degree of Operating Leverage Calculation

Power Solutions International'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
=( 95.616 (Mar. 2025) / 46.413 (Mar. 2024) - 1 )/( 516.173 (Mar. 2025) / 437.744 (Mar. 2024) - 1 )
=1.0601/0.1792
=5.92***

* 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.


Power Solutions International  (NAS:PSIX) 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.


Power Solutions International Degree of Operating Leverage Related Terms

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Power Solutions International Business Description

Traded in Other Exchanges
N/A
Address
201 Mittel Drive, Wood Dale, IL, USA, 60191
Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that run on nondiesel fuels, including natural gas, propane, and gasoline. The company's products are designed to meet emission standards imposed by environmental regulatory bodies like the Environmental Protection Agency. Its products are distributed to a wide range of industrial original equipment manufacturers that supply equipment to sectors including power generation, oil and gas, material handling, airport ground support, agricultural, turf, construction and irrigation. The company generates majority of its sales from United States.
Executives
Gary S Winemaster director, 10 percent owner, officer: See Remarks 231 EAST COLONIAL DRIVE, VERNON HILLS IL 60061
Neil Gagnon 10 percent owner 1370 AVENUE OF THE AMERICAS, 24TH FLOOR, NEW YORK NY 10019
Fuzhang Yu director 201 MITTEL DRIVE, WOOD DALE IL 60191
Jiwen Zhang director 201 MITTEL DRIVE, WOOD DALE IL 60191
Gengsheng Zhang director 201 MITTEL DRIVE, WOOD DALE IL 60191
Xun Li officer: Chief Financial Officer 201 MITTEL DRIVE, WOOD DALE IL 60191
Junhua Gu officer: See Remarks 201 MITTEL DRIVE, WOOD DALE IL 60191
Matthew Joseph Thomas officer: See Remarks 201 MITTEL DRIVE, WOOD DALE IL 60191
Fabrizio Mozzi director 201 MITTEL DRIVE, WOOD DALE IL 60191
Lei Lei director 201 MITTEL DRIVE, WOOD DALE IL 60191
Xykis Constantine officer: Chief Technology Officer 201 MITTEL DRIVE, WOOD DALE IL 60191
Sidong Shao director C/O 200 WEST MITTEL DRIVE, WOOD DALE IL 60191
Xinghao Li director C/O 200 WEST MITTEL DRIVE, WOOD DALE IL 60191
Hong He director 201 MITTEL DRIVE, WOOD DALE IL 60191
Lance Michael Arnett officer: Chief Commercial Officer 201 MITTEL DRIVE, WOOD DALE IL 60191