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TGEN (Tecogen) Degree of Operating Leverage : -0.27 (As of Dec. 2024)


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What is Tecogen Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tecogen's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TGEN's Degree of Operating Leverage is ranked better than
69.06% of 2941 companies
in the Industrial Products industry
Industry Median: 1.12 vs TGEN: -0.27

Tecogen Degree of Operating Leverage Historical Data

The historical data trend for Tecogen'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.

Tecogen Degree of Operating Leverage Chart

Tecogen 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 -1.91 11.92 -65.07 164.44 -0.27

Tecogen Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 164.44 0.30 8.76 -4.99 -0.27

Competitive Comparison of Tecogen's Degree of Operating Leverage

For the Electrical Equipment & Parts subindustry, Tecogen'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.


Tecogen's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tecogen's Degree of Operating Leverage distribution charts can be found below:

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


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Tecogen Degree of Operating Leverage Calculation

Tecogen's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -4.534 (Dec. 2024) / -4.414 (Dec. 2023) - 1 )/( 22.62 (Dec. 2024) / 25.139 (Dec. 2023) - 1 )
=0.0272/-0.1002
=-0.27***

* 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.


Tecogen  (AMEX:TGEN) 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.


Tecogen Degree of Operating Leverage Related Terms

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


Tecogen Business Description

Traded in Other Exchanges
Address
45 First Avenue, Waltham, MA, USA, 02451
Tecogen Inc, designs, manufactures, markets, and maintains high-efficiency, ultra-clean cogeneration products. It operates in three business segments, namely Products, Services, and Energy Production. Products segment designs, manufactures, and sells industrial and commercial cogeneration systems. The services segment provides operations and maintenance services and turn-key installation for products under long-term service contracts. The Energy Production segment sells energy in the form of electricity, heat, hot water, and cooling to the customers under long-term energy sales agreements.
Executives
Earl R Lewis director C/O NXSTAGE MEDICAL INC. (NXTM), 439 SOUTH UNION STREET, 5TH FLOOR, LAWRENCE MA 01843
John Hatsopoulos director, 10 percent owner, officer: Chief Executive Officer 85 FIRST AVENUE, WALTHAM MA 02451
Susan B Hirsch director 280 OLD SOMERSET ROAD, WATCHUNG NJ 07069
Abinand Rangesh director, officer: Chief Financial Officer 45 FIRST AVE, WALTHAM MA 02451
John M Albertine director 100 FEDERAL DRIVE, FREDERICKSBURG VA 22405
Pacheco Ann Marie Brown 10 percent owner, other: Trustee C/O TECOGEN INC., 45 FIRST AVE., WALTHAM MA 02451
Ralph Jenkins director 45 FIRST AVE, WALTHAM MA 02451
Fred Holubow director
Locke M. Benjamin officer: Co-CEO 45 FIRST AVE, WALTHAM MA 02451
Whiting John Kimball Iv officer: General Counsel & Secretary 49 L STREET, UNIT 9, BOSTON MA 02127
Deanna M Petersen director 45 FIRST AVENUE, WALTHAM MA 02451
Yiannis Monovoukas 10 percent owner TEI BIOSCIENCES, INC., 7 ELKINS STREET, BOSTON MA 02127
Charlest Maxwell director 6100 NORTH WESTERN AVE, OKLAHOMA CITY OK 73118
Keith Davidson director C/O TECOGEN INC., 45 FIRST AVE., WALTHAM MA 02451
David A Garrison officer: CFO, Treasurer and Secretary C/O ARRHYTHMIA RESEARCH TECHNOLOGY INC., 25 SAWYER PASSWAY, FITCHBURG MA 01420

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