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Aluula Composites (TSXV:AUUA) Degree of Operating Leverage : 1.76 (As of Jan. 2025)


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What is Aluula Composites Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Aluula Composites's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 1.76. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSXV:AUUA's Degree of Operating Leverage is ranked worse than
57.74% of 1008 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.035 vs TSXV:AUUA: 1.76

Aluula Composites Degree of Operating Leverage Historical Data

The historical data trend for Aluula Composites'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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Aluula Composites Degree of Operating Leverage Chart

Aluula Composites Annual Data
Trend Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
- -35.00 16.51 8.30

Aluula Composites Quarterly Data
Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Oct24 Jan25
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 16.51 4.23 10.08 8.30 1.76

Competitive Comparison of Aluula Composites's Degree of Operating Leverage

For the Textile Manufacturing subindustry, Aluula Composites'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.


Aluula Composites's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Aluula Composites's Degree of Operating Leverage distribution charts can be found below:

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


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Aluula Composites Degree of Operating Leverage Calculation

Aluula Composites's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.706 (Jan. 2025) / -2.269 (Jan. 2024) - 1 )/( 2.665 (Jan. 2025) / 4.371 (Jan. 2024) - 1 )
=-0.6888/-0.3903
=1.76***

* 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.


Aluula Composites  (TSXV:AUUA) 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.


Aluula Composites Degree of Operating Leverage Related Terms

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Aluula Composites Business Description

Traded in Other Exchanges
N/A
Address
4240 Glanford Avenue, Suite 300, Victoria, BC, CAN, V8Z 4B8
Aluula Composites Inc is a manufacturer of composite materials. It specializes in the production of lightweight and high-performance composite materials for various applications, including the wind sports, outdoor, sailing, and aerospace markets. The company utilizes various manufacturing technologies, such as 3D printing, to produce its composite materials and components.

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