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UGRO (Urban-gro) Degree of Operating Leverage : 0.11 (As of Sep. 2024)


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What is Urban-gro Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Urban-gro's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UGRO's Degree of Operating Leverage is ranked better than
65.05% of 206 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.405 vs UGRO: 0.11

Urban-gro Degree of Operating Leverage Historical Data

The historical data trend for Urban-gro'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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Urban-gro Degree of Operating Leverage Chart

Urban-gro Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial - -6.37 -0.73 -2,571.85 10.05

Urban-gro Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 16.07 10.05 0.84 -3.43 0.11

Competitive Comparison of Urban-gro's Degree of Operating Leverage

For the Farm & Heavy Construction Machinery subindustry, Urban-gro'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.


Urban-gro's Degree of Operating Leverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Urban-gro's Degree of Operating Leverage distribution charts can be found below:

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


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Urban-gro Degree of Operating Leverage Calculation

Urban-gro's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -19.155 (Sep. 2024) / -19.53 (Sep. 2023) - 1 )/( 58.362 (Sep. 2024) / 71.385 (Sep. 2023) - 1 )
=-0.0192/-0.1824
=0.11***

* 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.


Urban-gro  (NAS:UGRO) 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.


Urban-gro Degree of Operating Leverage Related Terms

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


Urban-gro Business Description

Traded in Other Exchanges
Address
1751 Panorama Point, Unit G, Lafayette, CO, USA, 80026
Urban-gro Inc is an integrated professional services and construction design-build firm. Its business focuses predominantly on providing fee-based knowledge-based services as well as the value-added reselling of equipment. The company offers value-added architectural, engineering, systems procurement and integration, and construction design-build solutions to customers operating in the controlled environment agriculture (CEA) and industrial and other commercial (Commercial) sectors. It derives revenue predominately from the sale of equipment systems, services, construction design-build, and other various immaterial contracts with customers.
Executives
Lewis Wilks director 555 SEVENTEENTH STREET, 7TH FLOOR, DENVER CO 80202
Bradley John Nattrass director, officer: Chief Executive Officer 5115 FOXGLOVE TRAIL, BROOMFIELD CO 80023
Jason T Archer officer: Chief Operating Officer 883 CARBONATE LANE, ERIE CO 80516
Jim Dennedy director, officer: President and COO 5269 W. 62ND AVENUE, ARVADA CO 80003
Sonia Lo director 1751 PANORAMA POINT, UNIT G, LAFAYETTE CO 80026
Anita D Britt director 3000 NW 107TH AVENUE, MIAMI FL 33172
David Hsu director 1751 PANORAMA POINT, SUITE G, LAFAYETTE CO 80026
James Robert Lowe director 5132 QUITMAN STREET, DENVER CO 80212
Richard Alan Akright officer: Interim CFO 6549 S. BLACKHAWK WAY, AURORA CO 80016
Lance Galey director 3940 CHIPPEWA DR, BOULDER CO 80303
James H. Dennedy director 61 ROYAL BIRKDALE, SPRINGBORO OH 45066
George R Pullar director 1750 PANORAMA POINT, UNIT 6, LAYFETTE CO 80026
Gutierrez Arias De La Parra Octavio director, officer: Secretary 2537 PROSPECT COURT, BROOMFIELD CO 80023