GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Reko International Group Inc (OTCPK:RKIGF) » Definitions » Degree of Operating Leverage

RKIGF (Reko International Group) Degree of Operating Leverage : 19.06 (As of Apr. 2025)


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

What is Reko International Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Reko International Group's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 19.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RKIGF's Degree of Operating Leverage is ranked worse than
92.65% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs RKIGF: 19.06

Reko International Group Degree of Operating Leverage Historical Data

The historical data trend for Reko International 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.

Reko International Group Degree of Operating Leverage Chart

Reko International Group Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.27 12.49 4.64 3.51 27.64

Reko International 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 12.87 27.64 15.25 19.06 -

Competitive Comparison of Reko International Group's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Reko International 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.


Reko International Group's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Reko International Group's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Reko International Group Degree of Operating Leverage Calculation

Reko International 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
=( -0.239 (Apr. 2025) / -0.282 (Apr. 2024) - 1 )/( 28.916 (Apr. 2025) / 34.233 (Apr. 2024) - 1 )
=-0.1525/-0.1553
=0.98***

* 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.


Reko International Group  (OTCPK:RKIGF) 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.


Reko International Group Degree of Operating Leverage Related Terms

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


Reko International Group Business Description

Traded in Other Exchanges
Address
469 Silver Creek Industrial Drive, Lakeshore, ON, CAN, N8N 4W2
Reko International Group Inc is a Canada-based company engaged in the activities of robotic factory automation solutions, precision machining of large, critical parts, and plastic injection, and low compression acoustic tooling. The business divisions of the group are Automation, design and build, Tool and mold manufacturing, and Precision Machining. It supplies factory automation services in Canada. The company also provides machining, tooling, and engineering services. Precision machining relates to precision, custom machining of castings, and assemblies. Its geographical segments include Canada, which is the key revenue driver; and the United States.

Reko International Group Headlines

No Headlines