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SIF (SIFCO Industries) Degree of Operating Leverage : -3.20 (As of Mar. 2025)


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What is SIFCO Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SIFCO Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SIF's Degree of Operating Leverage is ranked better than
78.96% of 309 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs SIF: -3.20

SIFCO Industries Degree of Operating Leverage Historical Data

The historical data trend for SIFCO 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.

SIFCO Industries Degree of Operating Leverage Chart

SIFCO Industries Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -239.29 9.22 -36.85 -0.24 -8.47

SIFCO Industries 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 0.98 1.42 -8.47 -2.34 -3.20

Competitive Comparison of SIFCO Industries's Degree of Operating Leverage

For the Aerospace & Defense subindustry, SIFCO 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.


SIFCO Industries's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

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

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


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SIFCO Industries Degree of Operating Leverage Calculation

SIFCO Industries'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
=( -4.754 (Mar. 2025) / -10.387 (Mar. 2024) - 1 )/( 71.948 (Mar. 2025) / 61.515 (Mar. 2024) - 1 )
=-0.5423/0.1696
=-3.20***

* 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.


SIFCO Industries  (AMEX:SIF) 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.


SIFCO Industries Degree of Operating Leverage Related Terms

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


SIFCO Industries Business Description

Traded in Other Exchanges
Address
970 East 64th Street, Cleveland, OH, USA, 44103
SIFCO Industries Inc is engaged in the production of forgings and machined components for the Aerospace and Energy, Defense and Commercial Space markets. Its processes and services include forging, heat-treating and machining. It serves original equipment manufacturers (OEM) as well as aftermarket customers. Its products are made of steel, stainless steel, titanium and aluminium and include OEM and aftermarket components for aircraft and industrial gas turbine engines, steam turbine blades, structural airframe components, aircraft landing gear components, aircraft wheels and brakes, critical rotating components for helicopters and industrial products. Substantial revenue is derived from North America as well as operates in Europe.
Executives
Wells Norman E Jr. director PO BOX 609, AURORA OH 44202
Alayne L Reitman director SIFCO INDUSTRIES INC, 970 EAST 64TH STREET, CLEVELAND OH 44103
Peter William Knapper director, officer: President & CEO 5924 MEDALLION DRIVE, WESTERVILLE OH 43082
Molten Donald C Jr. director 970 EAST 64TH STREET, CLEVELAND OH 44103
Mark J Silk director, 10 percent owner 4946 AZUSA CANYON ROAD, IRWINDALE CA 91706
Hudson Smith director SIFCO INDUSTRIES INC, 970 EAST 64TH STREET, CLEVELAND OH 44103
Thomas Robert Kubera officer: Corporate Controller 1327 SPRUCEDALE ROAD, BROADVIEW HEIGHTS OH 44147
Jeffrey P Gotschall director SIFCO INDUSTRIES INC, 970 EAST 64TH STREET, CLEVELAND OH 44103
Salvatore Incanno officer: VP of Finance & CFO 970 E. 64TH ST, CLEVELAND OH 44103
John Sr Chapman director 970 EAST 64TH STREET, CLEVELAND OH 44103
Dennis Paul Hido officer: Corporate Controller 21 EMERALD COURT, CANFIELD OH 44406
Catherine Marie Kramer officer: Vice President-Finance & CFO 14388 CASTLEREAGH LANE, STRONSVILLE OH 44136
Frank N Nichols director 8646 CARDINAL DRIVE, KIRTLAND OH 44094
Frank A Cappello officer: Vice President Finance and CFO SIFCO INDUSTRIES INC, 970 EAST 64TH STREET, CLEVELAND OH 44103
Miller P Charles Jr director SIFCO INDUSTRIES INC, 970 EAST 64TH STREET, CLEVELAND OH 44103