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RGR (Sturm Ruger) Degree of Operating Leverage : -34.39 (As of Mar. 2025)


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What is Sturm Ruger Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sturm Ruger's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -34.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RGR's Degree of Operating Leverage is ranked better than
93.77% of 305 companies
in the Aerospace & Defense industry
Industry Median: 1.09 vs RGR: -34.39

Sturm Ruger Degree of Operating Leverage Historical Data

The historical data trend for Sturm Ruger'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.

Sturm Ruger Degree of Operating Leverage Chart

Sturm Ruger 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 4.68 2.48 2.57 5.22 23.98

Sturm Ruger 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 5.27 4.82 6.22 23.98 -34.39

Competitive Comparison of Sturm Ruger's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Sturm Ruger'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.


Sturm Ruger's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Sturm Ruger's Degree of Operating Leverage distribution charts can be found below:

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


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Sturm Ruger Degree of Operating Leverage Calculation

Sturm Ruger'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
=( 38.576 (Mar. 2025) / 49.576 (Mar. 2024) - 1 )/( 534.561 (Mar. 2025) / 531.134 (Mar. 2024) - 1 )
=-0.2219/0.0065
=-34.39***

* 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.


Sturm Ruger  (NYSE:RGR) 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.


Sturm Ruger Degree of Operating Leverage Related Terms

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


Sturm Ruger Business Description

Traded in Other Exchanges
Address
1 Lacey Place, Southport, CT, USA, 06890
Sturm Ruger & Co Inc and its subsidiary are principally engaged in the design, manufacture, and sale of firearms to domestic customers. The company's design and manufacturing operations are in the United States and almost all product content is domestic. The company has two reportable operating segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a number of federally-licensed, independent wholesale distributors located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding parts. It generates maximum income from the sale of Firearms.
Executives
Terrence Gregory Oconnor director C/O HIGH RISE PARTNERS, 325 NORTH AVENUE EAST, WESTFIELD NJ 07090
Sarah F Colbert officer: VP of Administration ONE LACEY PLACE, SOUTHPORT CT 06890
Amir Rosenthal director C/O KATY INDUSTRIES INC, 765 STRAITS TURNPIKE STE 2000, MIDDLEBURY CT 06762
Christopher John Killoy officer: Vice President Sales and Mtg. C/O STURM, RUGER, & COMPANY, INC., 1 LACEY PLACE, SOUTHPORT CT 06890
Michael W Wilson officer: VP of Mayodan Operations ONE LACEY PLACE, SOUTHPORT CT 06890
Reid Kevin B. Sr officer: VP & General Counsel C/O STURM, RUGER & CO. INC, 1 LACEY PLACE, SOUTHPORT CT 06890
Timothy Lowney officer: VP of Prescott Operations 1 LACEY PLACE, SOUTHPORT CT 06890
Rebecca S Halstead director ONE LACEY PLACE, SOUTHPORT CT 06890
Shawn Christopher Leska officer: Vice President, Sales ONE LACEY PLACE, SOUTHPORT CT 06890
C Michael Jacobi director C/O KATY INDUSTRIES INC, 765 STRAITS TURNPIKE STE 2000, MIDDLEBURY CT 06762
Randall Wheeler officer: VP of Newport Operations 1 LACEY PLACE, SOUTHPORT CT 06890
Thomas Patrick Sullivan officer: VP of Newport Operations C/O STURM RUGER & COMPANY INC, ONE LACEY PLACE, SOUTHPORT CT 06890
Ronald C Whitaker director C/O STURM RUGER & COMPANY INC, ONE LACEY PLACE, SOUTHPORT CT 06890
Thomas Anthony Dineen officer: Treasurer and CFO
Michael O Fifer director, officer: President & CEO C/O STURM RUGER & COMPANY, INC, ONE LACEY PLACE, SOUTHPORT CT 06890