GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Surge Components Inc (OTCPK:SPRS) » Definitions » Degree of Operating Leverage

SPRS (Surge Components) Degree of Operating Leverage : -5.30 (As of Feb. 2025)


View and export this data going back to 1996. Start your Free Trial

What is Surge Components Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Surge Components's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -5.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SPRS's Degree of Operating Leverage is ranked better than
82.89% of 2414 companies
in the Hardware industry
Industry Median: 1 vs SPRS: -5.30

Surge Components Degree of Operating Leverage Historical Data

The historical data trend for Surge Components'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.

Surge Components Degree of Operating Leverage Chart

Surge Components Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.36 5.44 1.19 2.22 1.72

Surge Components Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 2.40 2.85 2.82 1.72 -5.30

Competitive Comparison of Surge Components's Degree of Operating Leverage

For the Electronics & Computer Distribution subindustry, Surge Components'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.


Surge Components's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Surge Components's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Surge Components Degree of Operating Leverage Calculation

Surge Components's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1.417 (Feb. 2025) / 0.993 (Feb. 2024) - 1 )/( 31.389 (Feb. 2025) / 34.139 (Feb. 2024) - 1 )
=0.427/-0.0806
=-5.30***

* 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.


Surge Components  (OTCPK:SPRS) 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.


Surge Components Degree of Operating Leverage Related Terms

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


Surge Components Business Description

Traded in Other Exchanges
N/A
Address
95 East Jefryn Boulevard, Deer Park, New York, NY, USA, 11729
Surge Components Inc is a supplier of electronic products and components. The company's products include capacitors, which are electrical energy storage devices, and discrete components, such as rectifiers, switches, transistors, voltage suppressors, and diodes. Its marketed products are utilized in the electronic circuitry of products, comprising of automobiles, telecom, audio, cellular telephones, computers, consumer electronics, garage door openers, household appliances, power supplies, and security equipment. In addition, the company's products are also sold to original equipment manufacturers and distributors.
Executives
Peter Levy director C/O ATLAS THERAPEUTICS CORPORATION, 4640 ADMIRALTY WAY, SUITE 500, MARINA DEL REY CA 90292
Michael D Tofias 10 percent owner 325 NORTH END AVENUE, APT. 25B, NEW YORK NY 10282
Steven J Lubman director, officer: VP, Secretary, Director 1016 GRAND BLVD, DEER PARK NY 11729
Martin Novick director
Alan Plafker director 24 SYLVIA ROAD, PLAINVIEW NY 11803
Gary Mark Jacobs director 15 HOOVER STREET, INWOOD NY 11096
Lawrence Chariton director 30 ROCKAWAY PLACE, MASSAPEQUA NY 11758
Ira Levy director, officer: Chief Executive Officer
David Siegel director 95 EAST JEFRYN BOULEVARD, DEER PARK NY 11729