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TPCS (Techprecision) Degree of Operating Leverage : 8.27 (As of Dec. 2024)


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What is Techprecision Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Techprecision's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 8.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TPCS's Degree of Operating Leverage is ranked worse than
85.68% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs TPCS: 8.27

Techprecision Degree of Operating Leverage Historical Data

The historical data trend for Techprecision'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.

Techprecision Degree of Operating Leverage Chart

Techprecision Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.39 275.20 -3.29 1.77 1,797.42

Techprecision 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 -6,980.78 1,797.42 723.96 35.72 8.27

Competitive Comparison of Techprecision's Degree of Operating Leverage

For the Metal Fabrication subindustry, Techprecision'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.


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

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

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


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Techprecision Degree of Operating Leverage Calculation

Techprecision'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
=( -4.943 (Dec. 2024) / -2.872 (Dec. 2023) - 1 )/( 33.154 (Dec. 2024) / 30.496 (Dec. 2023) - 1 )
=0.7211/0.0872
=8.27***

* 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.


Techprecision  (NAS:TPCS) 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.


Techprecision Degree of Operating Leverage Related Terms

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


Techprecision Business Description

Traded in Other Exchanges
N/A
Address
1 Bella Drive, Westminster, MA, USA, 01473
Techprecision Corp manufactures metal fabricated and machined precision components and systems. It offers a full range of services required to transform raw materials into precision finished products. The company's products are used in markets including defense, aerospace, nuclear, medical, and precision industries. All of its operations and customers are located in the United States. The company have two wholly owned subsidiaries that are each reportable segments: Ranor and Stadco. Each reportable segment focuses on the manufacture and assembly of specific components.
Executives
Barbara M. Lilley officer: Chief Financial Officer C/O TECHPRECISION CORPORATION, 1 BELLA DRIVE, WESTMINISTER MA 01473
Andrew A Levy director 46 BALDWIN FARM NORTH, GREENWHICH CT 06831
Walter Milton Schenker director 1130 ROUTE 46, SUITE 22, PARSIPPANY NJ 07054
Thomas Sammons officer: Chief Financial Officer C/O TECHPRECISION CORPORATION, 992 OLD EAGLE SCHOOL ROAD, SUITE 909, WAYNE PA 19087
Alexander Shen officer: Chief Executive Officer C/O TECHPRECISION CORPORATION, 3477 CORPORATE PARKWAY, CENTER VALLEY PA 18034
Robert A Crisafulli director 1 BELLA DRIVE, WESTMINSTER PA 01473
Richard Mcgowan director C/O CLEVELAND BIOLABS, INC., 73 HIGH STREET, BUFFALO NY 14203
Philip A Dur director 1600 TECHNOLOGY WAY, P.O. BOX 231, LATROBE PA 15650
Robert G Isaman director C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880
Robert Francis other: President & GM of Ranor, Inc. C/O TECHPRECISION CORPORATION, 3477 CORPORATE PARKWAY, CENTER VALLEY PA 18034
Leonard M Anthony director MRC GLOBAL INC., 2 HOUSTON CENTER, 909 FANNIN, SUITE 3100, HOUSTON TX 77010
James S Molinaro director, officer: Chief Executive Officer 6330 WEGEWOOD DR, ALLENTOWN PA 18106
Richard F Fitzgerald officer: Chief Financial Officer C/O TECHPRECISION CORPORATION, ONE BELLA DRIVE, WESTMINSTER MA 01473
Michael R Holly director 1729 SWEDESFORD ROAD, MALVERN PA 19355
Louis A Winoski director C/O TECHPRECISION CORPORATION, ONE BELLA DRIVE, WESTMINSTER MA 01473