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REX (REX American Resources) Degree of Operating Leverage : 0.29 (As of Jan. 2025)


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What is REX American Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. REX American Resources's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 0.29. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for REX American Resources's Degree of Operating Leverage or its related term are showing as below:

REX's Degree of Operating Leverage is ranked better than
59.83% of 1516 companies
in the Chemicals industry
Industry Median: 1.04 vs REX: 0.29

REX American Resources Degree of Operating Leverage Historical Data

The historical data trend for REX American Resources'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.

REX American Resources Degree of Operating Leverage Chart

REX American Resources Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -10.92 32.88 -6.06 -66.09 0.29

REX American Resources Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 -66.09 -20.05 -13.07 -1.98 0.29

Competitive Comparison of REX American Resources's Degree of Operating Leverage

For the Chemicals subindustry, REX American Resources'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.


REX American Resources's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, REX American Resources's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where REX American Resources's Degree of Operating Leverage falls into.


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REX American Resources Degree of Operating Leverage Calculation

REX American Resources's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 64.329 (Jan. 2025) / 68.839 (Jan. 2024) - 1 )/( 642.491 (Jan. 2025) / 833.384 (Jan. 2024) - 1 )
=-0.0655/-0.2291
=0.29***

* 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.


REX American Resources  (NYSE:REX) 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.


REX American Resources Degree of Operating Leverage Related Terms

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


REX American Resources Business Description

Traded in Other Exchanges
Address
7720 Paragon Road, Dayton, OH, USA, 45459
REX American Resources Corp operates as a holding company, which engages in investment in alternative energy and ethanol production entities. Its operating segments include Ethanol and By-Products. Its products include dried distillers grains, modified distillers grains, and non-food grade corn oil.
Executives
Lee Fisher director 3605 WARRENSVILLE CENTER ROAD, SHAKER HEIGHTS OH 44122
Stuart A Rose director, 10 percent owner, officer: COB; CEO 7720 PARAGON ROAD, DAYTON OH 45459
Douglas Bruggeman officer: CFO, VP-Finance, Treasurer 7720 PARAGON ROAD, DAYTON OH 45459
Cheryl Lea Bustos director 43 SUGARCREEK TRAIL, GALENA IL 61036
Mervyn L Alphonso director 7720 PARAGON ROAD, DAYTON OH 45459
Anne Macmillan director 7720 PARAGON ROAD, DAYTON OH 45459
Lawrence Tomchin director 7720 PARAGON ROAD, DAYTON OH 45459
Zafar A Rizvi officer: VP Loss Prevention 7720 PARAGON ROAD, DAYTON OH 45459
Edward M Kress director, officer: Secretary 6505 LANDSEND COURT, DAYTON OH 45414
J. Dennis Hastert director 20 S. WACKER DRIVE, CHICAGO IL 60606
David Fuchs officer: VP Mgmt Information Systems 1366 HOLLOWCREEK DRIVE, MIAMISBURG OH 45342
Keith B Magby officer: VP Operations 1947 FOUNTAINVIEW DRIVE, DAYTON OH 45414
David L Bearden officer: President;COO 1517 WOODS DRIVE - UNIT 209, ARLINGTON HEIGHTS IL 60004
Philip J Kellar officer: VP Store Operations P O BOX 6592, KINGSPORT TN 37663
David Harris director 237 PARK AVENUE - SUITE 900, NEW YORK NY 10017