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Polaris (STU:PL6) Degree of Operating Leverage : 3.76 (As of Mar. 2025)


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What is Polaris Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Polaris's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.76. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:PL6's Degree of Operating Leverage is ranked worse than
74.73% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.01 vs STU:PL6: 3.76

Polaris Degree of Operating Leverage Historical Data

The historical data trend for Polaris'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.

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Polaris Degree of Operating Leverage Chart

Polaris Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -15.79 26.03 1.88 -2.62 3.19

Polaris 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 5.85 4.25 3.74 3.19 3.76

Competitive Comparison of Polaris's Degree of Operating Leverage

For the Recreational Vehicles subindustry, Polaris'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.


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

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

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


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Polaris Degree of Operating Leverage Calculation

Polaris'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
=( 186.279 (Mar. 2025) / 566.372 (Mar. 2024) - 1 )/( 6470.859 (Mar. 2025) / 7849.825 (Mar. 2024) - 1 )
=-0.6711/-0.1757
=3.82***

* 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.


Polaris  (STU:PL6) 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.


Polaris Degree of Operating Leverage Related Terms

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


Polaris Business Description

Traded in Other Exchanges
Address
2100 Highway 55, Medina, MN, USA, 55340
Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to another segment of the outdoor lifestyle market. Polaris products are retailed through more than 2,500 dealers in North America and 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.

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