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RCKY (Rocky Brands) Degree of Operating Leverage : 9.38 (As of Mar. 2025)


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What is Rocky Brands Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Rocky Brands's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 9.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RCKY's Degree of Operating Leverage is ranked worse than
84.5% of 1013 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.08 vs RCKY: 9.38

Rocky Brands Degree of Operating Leverage Historical Data

The historical data trend for Rocky Brands'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.

Rocky Brands Degree of Operating Leverage Chart

Rocky Brands 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 9.02 0.38 1.14 0.79 6.97

Rocky Brands 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 -0.71 -4.59 -1.82 6.97 9.38

Competitive Comparison of Rocky Brands's Degree of Operating Leverage

For the Footwear & Accessories subindustry, Rocky Brands'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.


Rocky Brands's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Rocky Brands's Degree of Operating Leverage distribution charts can be found below:

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


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Rocky Brands Degree of Operating Leverage Calculation

Rocky Brands'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
=( 31.79 (Mar. 2025) / 39.2 (Mar. 2024) - 1 )/( 454.939 (Mar. 2025) / 464.294 (Mar. 2024) - 1 )
=-0.189/-0.0201
=9.38***

* 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.


Rocky Brands  (NAS:RCKY) 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.


Rocky Brands Degree of Operating Leverage Related Terms

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


Rocky Brands Business Description

Traded in Other Exchanges
Address
39 East Canal Street, Nelsonville, OH, USA, 45764
Rocky Brands Inc acts as a designer, manufacturer, and marketer of premium-quality footwear and apparel. The company's family of brands includes Rocky, Georgia Boot, Durango, Lehigh, Creative Recreation, and the licensed brand Michelin footwear. The company operates its business through three business segments: Wholesale, Retail and Contract Manufacturing. It generates the majority of the revenue from the Wholesale segment.
Executives
Dwight Eric Smith director 518 EAST BROAD STREET, COLUMBUS OH 43215
Moore Robert Burton Jr. director 39 E. CANAL ST., NELSONVILLE OH 45764
Curtis A Loveland director, officer: Secretary PORTER WRIGHT MORRIS & ARTHUR, 41 SOUTH HIGH STREET, COLUMBUS OH 43215
Haning G Courtney director 110 N. MAIN ST., NEW LEXINGTON OH 43764
Mike Brooks director, officer: Chairman, President and CEO 39 E CANAL ST, NELSONVILLE OH 45764
Michael L Finn director 2555 INTERNATIONAL STREET, COLUMBUS OH 43221
Sarah E O'connor officer: SVP, CFO and Treasurer 39 EAST CANAL STREET, NELSONVILLE OH 45764
Jason Brooks officer: President-US Wholesale Sales 39 E. CANAL ST., NELSONVILLE OH 45764
Thomas D. Robertson officer: Chief Financial Officer 39 E. CANAL ST., NELSONVILLE OH 45764
James L Stewart director 39 EAST CANAL ST, NELSONVILLE OH 45764
Robyn R. Hahn director 39 E. CANAL ST., NELSONVILLE OH 45764
William L Jordan director 810 DSW DRIVE, COLUMBUS OH 43219
Byron Wortham officer: Pres CoreBrndSalesMktg&ProdDev 39 E. CANAL ST., NELSONVILLE OH 45764
Tracie A. Winbigler director 39 E. CANAL ST., NELSONVILLE OH 45764
Richard Simms officer: President-Retail Sales 39 E. CANAL ST., NELSONVILLE OH 45764