RCAT (Red Cat Holdings) Degree of Operating Leverage : 0.03 (As of Oct. 2024)

Red Cat Holdings Degree of Operating Leverage Chart

Red Cat Holdings Annual Data
	Trend	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Apr20	Apr21	Apr22	Apr23
Degree of Operating Leverage		Get a 7-Day Free Trial					-	-0.09	0.60	-0.14	-3.69

Red Cat Holdings Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Degree of Operating Leverage	Get a 7-Day Free Trial															0.69	0.12	-0.07	-0.07	0.03

Competitive Comparison of Red Cat Holdings's Degree of Operating Leverage

For the Computer Hardware subindustry, Red Cat Holdings'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.

Red Cat Holdings's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Red Cat Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Red Cat Holdings's Degree of Operating Leverage falls into.

Red Cat Holdings Degree of Operating Leverage Calculation

Red Cat Holdings's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

* 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.

Red Cat Holdings  (NAS:RCAT) 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.

Red Cat Holdings Degree of Operating Leverage Related Terms

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Red Cat Holdings Business Description