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RSKIA (George Risk Industries) Degree of Operating Leverage : 2.30 (As of Jan. 2025)


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What is George Risk Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. George Risk Industries's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 2.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for George Risk Industries's Degree of Operating Leverage or its related term are showing as below:

RSKIA's Degree of Operating Leverage is ranked worse than
67.1% of 1000 companies
in the Business Services industry
Industry Median: 0.985 vs RSKIA: 2.30

George Risk Industries Degree of Operating Leverage Historical Data

The historical data trend for George Risk Industries'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.

George Risk Industries Degree of Operating Leverage Chart

George Risk Industries Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.19 3.97 0.53 2.84 6.62

George Risk Industries 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 29.49 6.62 1.97 1.89 2.30

Competitive Comparison of George Risk Industries's Degree of Operating Leverage

For the Security & Protection Services subindustry, George Risk Industries'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.


George Risk Industries's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, George Risk Industries's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where George Risk Industries's Degree of Operating Leverage falls into.


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George Risk Industries Degree of Operating Leverage Calculation

George Risk Industries'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
=( 8.412 (Jan. 2025) / 7.628 (Jan. 2024) - 1 )/( 21.897 (Jan. 2025) / 20.96 (Jan. 2024) - 1 )
=0.1028/0.0447
=2.30***

* 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.


George Risk Industries  (OTCPK:RSKIA) 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.


George Risk Industries Degree of Operating Leverage Related Terms

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George Risk Industries Business Description

Traded in Other Exchanges
N/A
Address
802 South Elm Street, Kimball, NE, USA, 69145
George Risk Industries Inc manufactures security products. The company is engaged in the designing, manufacturing, and sale of various products which include magnetic reed switches as well as keyboards and keyboard switches, proximity sensors, security alarm components, pool access alarms, liquid detection sensors, raceway wire covers, wire, and cable installation tools and various other sensors and devices. These security products are used in alarm system installations in the residential, commercial, industrial, and government sectors and generate maximum revenue for the company.
Executives
Bonita Risk Family Irrevocable Trust 10 percent owner 705 JEFFERSON ST., KIMBALL NE 69145
Kenneth R. Risk Revocable Trust Now Irrevocable 10 percent owner 214 W. 9TH ST., KIMBALL NE 69145
Bonita Pauline Risk director 802 S. ELM ST., KIMBALL NE 69145
Stephanie Maire Risk-mcelroy officer: Chief Financial Officer 802 S. ELM ST., KIMBALL NE 69145
Sharon Alberta Westby officer: Secretary 802 S. ELM ST., KIMBALL NE 69145
Donna Dean Debowey director 802 S. ELM ST., KIMBALL NE 69145
Daniel Roger Douglas officer: Vice President, Materials 802 S. ELM ST., KIMBALL NE 69145

George Risk Industries Headlines

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