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SLDP (Solid Power) Degree of Operating Leverage : 9.90 (As of Mar. 2025)


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What is Solid Power Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Solid Power's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 9.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SLDP's Degree of Operating Leverage is ranked worse than
86.07% of 1285 companies
in the Vehicles & Parts industry
Industry Median: 1.06 vs SLDP: 9.90

Solid Power Degree of Operating Leverage Historical Data

The historical data trend for Solid Power'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.

Solid Power Degree of Operating Leverage Chart

Solid Power Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -7.13 -8.04 -0.46 12.00 2.89

Solid Power Quarterly Data
Dec19 Jun20 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 5.72 2.86 -12.19 2.89 9.90

Competitive Comparison of Solid Power's Degree of Operating Leverage

For the Auto Parts subindustry, Solid Power'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.


Solid Power's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Solid Power's Degree of Operating Leverage distribution charts can be found below:

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


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Solid Power Degree of Operating Leverage Calculation

Solid Power'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
=( -88.99 (Mar. 2025) / -67.483 (Mar. 2024) - 1 )/( 20.202 (Mar. 2025) / 19.572 (Mar. 2024) - 1 )
=0.3187/0.0322
=9.90***

* 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.


Solid Power  (NAS:SLDP) 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.


Solid Power Degree of Operating Leverage Related Terms

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


Solid Power Business Description

Traded in Other Exchanges
N/A
Address
486 South Pierce Avenue, Suite E, Louisville, CO, USA, 80027
Solid Power Inc is engaged in solid-state battery technology and manufacturing processes. Its core technology is a sulfide-based solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion battery cells. Its commercialization strategy is to manufacture and sell electrolytes to Tier 1 battery manufacturers and automotive original equipment manufacturers (OEMs) that choose to produce its battery cells.
Executives
Joshua Buettner-garrett officer: Chief Technology Officer C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Erik J Anderson director, officer: Chief Executive Officer 1411 E MISSION AVE, SPOKANE WA 99202
Steven H Goldberg director C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Lesa B Roe director C/O SOLID POWER, INC., 486 S PIERCE AVE, SUITE E, LOUISVILLE CO 80027
Susan M Kreh director 18400 PLEASANT STREET, BROOKFIELD WI 53045
Kaled Awada director 7450 N. MCCORMICK BLVD., SKOKIE IL 60076
Van Scoter John C. director, officer: President & CEO 486 S. PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Douglas M Campbell director, officer: Chief Executive Officer C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027
John Joseph Stephens director C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Mary Ann Wright director 486 S. PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Volta Energy Technologies, Llc 10 percent owner 28365 DAVIS PARKWAY, SUITE 202, WARRENVILLE IL 60555
Aleksandra A Miziolek director C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Jon Eric Jacobs officer: Chief Marketing Officer C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027
David B Jansen director, officer: President C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Johnson Derek Colby officer: Chief Operating Officer C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027