GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Research Frontiers Inc (NAS:REFR) » Definitions » Degree of Operating Leverage

REFR (Research Frontiers) Degree of Operating Leverage : -0.64 (As of Mar. 2025)


View and export this data going back to 1986. Start your Free Trial

What is Research Frontiers Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Research Frontiers's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.64. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

REFR's Degree of Operating Leverage is ranked better than
66.8% of 2413 companies
in the Hardware industry
Industry Median: 1 vs REFR: -0.64

Research Frontiers Degree of Operating Leverage Historical Data

The historical data trend for Research Frontiers'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.

Research Frontiers Degree of Operating Leverage Chart

Research Frontiers 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 0.39 -0.55 -0.75 -0.33 -0.62

Research Frontiers 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 -0.35 -0.39 -0.43 -0.62 -0.64

Competitive Comparison of Research Frontiers's Degree of Operating Leverage

For the Electronic Components subindustry, Research Frontiers'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.


Research Frontiers's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


;
;

Research Frontiers Degree of Operating Leverage Calculation

Research Frontiers'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
=( -1.212 (Mar. 2025) / -2.014 (Mar. 2024) - 1 )/( 1.582 (Mar. 2025) / 0.974 (Mar. 2024) - 1 )
=-0.3982/0.6242
=-0.64***

* 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.


Research Frontiers  (NAS:REFR) 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.


Research Frontiers Degree of Operating Leverage Related Terms

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


Research Frontiers Business Description

Traded in Other Exchanges
N/A
Address
240 Crossways Park Drive, Woodbury, NY, USA, 11797-2033
Research Frontiers Inc is engaged in the development and marketing of technology and devices to control the flow of light. The company develops and licenses its patented suspended particle device light-control technology to other companies that manufacture and market the SPD-Smart chemical emulsion, the light-control film made from the chemical emulsion, the light-control panels made by laminating the film, electronics to power end-products incorporating the film, or lamination services for, and the end-products. The company's revenue source comes from the licensing of technology.
Executives
Alexander Kaganowicz director 1217 CARLLS STRAIGHT PATH, DIX HILLS NY 11746
Darryl Daigle director 3213 WYTCHWOOD DRIVE, MORGAN CITY LA 70380
Eyal Peso director C/O GAUZY LTD., 14 HATHIYA STREET, TEL AVIV-YAFO L3 6816914
Kevin Douglas 10 percent owner, other: 13(d)(3) group 300A DRAKES LANDING ROAD, SUITE 200, GREENBRAE CA 94904
William Graham Settle director 6003 COBRIDGE SQUARE, RALEIGH NC 27609
Michael R Lapointe officer: Vice President-Marketing
Joseph M Harary director, officer: Persident and CEO
Grimes George Gregory director 24 FIFTH AVENUE, APT. 1530, NEW YORK NY 10011
James & Jean Douglas Irrevocable Descendants Trust 10 percent owner, other: 13(d)(3) group 300A DRAKES LANDING ROAD, SUITE 200, GREENBRAE CA 94904
Douglas Family Trust 10 percent owner, other: 13(d)(3) group 300A DRAKES LANDING ROAD, SUITE 200, GREENBRAE CA 94904
Voorhees Seth Van officer: VicePresident-Business Dev/CFO 12 HARVEY DRIVE, SHORT HILLS NJ 07078
Robert L Saxe director, officer: Chairman/CTO
Steven Michael Slovak officer: Vice President-Technology 240 CROSSWAYS PARK DRIVE, WOODBURY NY 11797
Jack Derby director 399 BOYLSTON STREET, BOSTON MA 02117
Victor F Keen director C/O RESEARCH FRONTIERS INC., 240 CROSSWAYS PARK DRIVE, WOODBURY NY 11797