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REVG (REV Group) Degree of Operating Leverage : 6.23 (As of Apr. 2025)


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What is REV Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. REV Group's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 6.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

REVG's Degree of Operating Leverage is ranked worse than
81.55% of 206 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.45 vs REVG: 6.23

REV Group Degree of Operating Leverage Historical Data

The historical data trend for REV Group'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.

REV Group Degree of Operating Leverage Chart

REV Group Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.07 -99.79 24.03 10.37 -33.31

REV Group Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 154.56 -135.92 -33.31 4.79 6.23

Competitive Comparison of REV Group's Degree of Operating Leverage

For the Farm & Heavy Construction Machinery subindustry, REV Group'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.


REV Group's Degree of Operating Leverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, REV Group's Degree of Operating Leverage distribution charts can be found below:

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


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REV Group Degree of Operating Leverage Calculation

REV Group's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 141.2 (Apr. 2025) / 346.2 (Apr. 2024) - 1 )/( 2331.5 (Apr. 2025) / 2576.2 (Apr. 2024) - 1 )
=-0.5921/-0.095
=6.23***

* 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.


REV Group  (NYSE:REVG) 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.


REV Group Degree of Operating Leverage Related Terms

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


REV Group Business Description

Traded in Other Exchanges
Address
245 South Executive Drive, Suite 100, Brookfield, WI, USA, 53005
REV Group Inc is a United States-based designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. During the first fiscal quarter of 2024, the Company formed the Specialty Vehicles Segment by combining the Fire & Emergency and Commercial segment businesses. Additionally, the Recreation segment was renamed Recreational Vehicles. As a result, the Company is now organized into two reportable segments. The company operates in the United States, Canada, and the rest of the world. Maximum of revenue is gained from Specialty Vehicles Segment.
Executives
Joseph Ladue officer: Chief Accounting Officer 245 SOUTH EXECUTIVE DR, SUITE 100, BROOKFIELD WI 53005
Charles Dutil director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
American Industrial Partners Capital Fund Iv (parallel), L.p. 10 percent owner 330 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10017
Stephen Zamansky officer: SVP, Gen Counsel & Sec
Maureen Oconnell director
Paul J Bamatter director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Joel M. Rotroff director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Dino M Cusumano director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Justin Fish director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Christopher M Daniels officer: Chief Human Resources Officer 111 E. KILBOURN AVE., SUITE 2600, MILWAUKEE WI 53202
Skonieczny Jr. Mark A officer: Chief Financial Officer 833 E MICHIGAN STREET, SUITE 1100, MILWAUKEE WI 53202
Rodney M Rushing director, officer: CEO and President 5757 N GREEN BAY AVE, MILWAUKEE WI 53209
Stephen W. Boettinger officer: General Counsel C/O REV GROUP, INC., 111 E KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Randall Swift director 450 LEXINGTON AVE, 40TH FLOOR, NEW YORK NY 10017
Dean J Nolden officer: Chief Financial Officer C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202