GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Volcon Inc (NAS:VLCN) » Definitions » Degree of Operating Leverage

VLCN (Volcon) Degree of Operating Leverage : -3.26 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is Volcon Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Volcon's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VLCN's Degree of Operating Leverage is ranked better than
80.39% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.02 vs VLCN: -3.26

Volcon Degree of Operating Leverage Historical Data

The historical data trend for Volcon'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.

Volcon Degree of Operating Leverage Chart

Volcon Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- - -0.02 -0.90 0.50

Volcon 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 -3.50 -0.09 -0.04 0.50 -3.26

Competitive Comparison of Volcon's Degree of Operating Leverage

For the Auto Manufacturers subindustry, Volcon'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.


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

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

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


;
;

Volcon Degree of Operating Leverage Calculation

Volcon'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
=( -21.519 (Mar. 2025) / -60.3 (Mar. 2024) - 1 )/( 3.74 (Mar. 2025) / 3.124 (Mar. 2024) - 1 )
=-0.6431/0.1972
=-3.26***

* 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.


Volcon  (NAS:VLCN) 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.


Volcon Degree of Operating Leverage Related Terms

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


Volcon Business Description

Traded in Other Exchanges
N/A
Address
3121 Eagles Nest Street, Suite 120, Round Rock, TX, USA, 78665
Volcon Inc is an all-electric, off-road powersports vehicle company developing and building electric two and four-wheel motorcycles and utility terrain vehicles, also known as side-by-sides, along with a complete line of upgrades and accessories. The company's products include motorcycle and UTV products that are all-electric and designed for off-road use.
Executives
Melissa Coffey officer: VP - Sales & Marketing 1702 PERSIMMON ROAD, CEDAR PARK TX 78613
Stephanie Michelle Davis officer: Chief Operating Officer 504 OCONEE CIRCLE, EVANS GA 30809
Christian Okonsky director, 10 percent owner, officer: Chief Technology Officer C/O VOLCON, INC., 2590 OAKMONT DRIVE, SUITE 520, ROUND ROCK TX 78665
Adrian James director, 10 percent owner 3736 BEE CAVES RD, SUITE 1-105, AUSTIN TX 78746
Jonathan P. Foster director 2450 SOUTH SHORE BLVD., SUITE 402, LEAGUE CITY TX 77573
Greg Endo officer: Chief Financial Officer C/O VOLCON, INC., 2590 OAKMONT DRIVE, SUITE 520, ROUND ROCK TX 78665
Karin-joyce Tjon director C/O VOLCON, INC., 2590 OAKMONT DRIVE, SUITE 520, ROUND ROCK TX 78665
Jordan Don Davis officer: Chief Executive Officer C/O VOLCON, INC., 2590 OAKMONT DRIVE, SUITE 520, ROUND ROCK TX 78665
Kyoung John Kim director C/O VOLCON, INC., 2590 OAKMONT DRIVE, SUITE 520, ROUND ROCK TX 78665