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RKLB (Rocket Lab USA) Degree of Operating Leverage : 0.24 (As of Mar. 2025)


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What is Rocket Lab USA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Rocket Lab USA's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Rocket Lab USA's Degree of Operating Leverage or its related term are showing as below:

RKLB's Degree of Operating Leverage is ranked better than
61.64% of 305 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs RKLB: 0.24

Rocket Lab USA Degree of Operating Leverage Historical Data

The historical data trend for Rocket Lab USA'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.

Rocket Lab USA Degree of Operating Leverage Chart

Rocket Lab USA Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 1.11 0.05 3.54 0.08

Rocket Lab USA Quarterly Data
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 1.06 0.38 0.36 0.08 0.24

Competitive Comparison of Rocket Lab USA's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Rocket Lab USA'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.


Rocket Lab USA's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where Rocket Lab USA's Degree of Operating Leverage falls into.


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Rocket Lab USA Degree of Operating Leverage Calculation

Rocket Lab USA'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
=( -200.943 (Mar. 2025) / -173.624 (Mar. 2024) - 1 )/( 466.016 (Mar. 2025) / 282.464 (Mar. 2024) - 1 )
=0.1573/0.6498
=0.24***

* 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.


Rocket Lab USA  (NAS:RKLB) 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.


Rocket Lab USA Degree of Operating Leverage Related Terms

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Rocket Lab USA Business Description

Traded in Other Exchanges
Address
3881 McGowen Street, Long Beach, CA, USA, 90808
Rocket Lab USA Inc is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defense, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered multiple satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments Launch Services and Space Systems. Geographically it serves Japan, Germany, rest of the world and earns key revenue from the United States.
Executives
Arjun Kampani officer: See Remarks C/O AEROJET ROCKETDYNE HOLDINGS, INC., 2001 AEROJET ROAD, RANCHO CORDOVA CA 95742
Adam C. Spice officer: Chief Financial Officer 2051 PALOMAR AIRPORT ROAD, SUITE 100, CARLSBAD CA 92011
Nina Armagno director C/O ROCKET LAB USA, INC., 3881 MCGOWEN ST, LONG BEACH CA 90808
Alexander R Slusky director 456 MONTGOMERY STREET, 19TH FLOOR, SAN FRANCISCO CA 94104
Merline Saintil director 10 SOUTH FIRST AVENUE, WALLA WALLA WA 99362
Jon A Olson director 2100 LOGIC DRIVE, SAN JOSE CA 95124
Matthew Ocko director 270 UNIVERSITY AVENUE, PALO ALTO CA 94301
Michael D Griffin director 21700 ATLANTIC BLVD, ORBITAL SCIENCES CORP, DULLES VA 20166
Peter Beck director, 10 percent owner, officer: President, CEO and Chairman C/O ROCKET LAB USA, INC., 3881, LONG BEACH CA 90808
Shaun O'donnell officer: EVP - Global Operations C/O ROCKET LAB USA, INC., 3881 MCGOWEN STREET, LONG BEACH CA 90808
Edward H. Frank director C/O FUSION-IO, INC., 2855 E. COTTONWOOD PARKWAY, SUITE 100, SALT LAKE CITY UT 84121
Sven Strohband director C/O BERKSHIRE GREY, INC., 140 SOUTH ROAD, BEDFORD MA 01730
Cowan David J/ca director 50 WOODSIDE PLAZA, SUITE 720, REDWOOD CITY CA 94061
Peek Street Equatorial Trustee Ltd 10 percent owner 123 CELTIC CRESCENT, ELLERSLIE, AUCKLAND Q2 1051
Equatorial Trust 10 percent owner 123 CELTIC CRESCENT, ELLERSLIE, AUCKLAND Q2 1051