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BGOUF (Bang & Olufsen AS) Degree of Operating Leverage : 30.07 (As of Feb. 2025)


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What is Bang & Olufsen AS Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Bang & Olufsen AS's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 30.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Bang & Olufsen AS's Degree of Operating Leverage or its related term are showing as below:

BGOUF's Degree of Operating Leverage is ranked worse than
94.25% of 2416 companies
in the Hardware industry
Industry Median: 1.09 vs BGOUF: 30.07

Bang & Olufsen AS Degree of Operating Leverage Historical Data

The historical data trend for Bang & Olufsen AS'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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Bang & Olufsen AS Degree of Operating Leverage Chart

Bang & Olufsen AS Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.23 -3.33 -19.78 139.66 24.01

Bang & Olufsen AS Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 18.91 24.01 48.07 -94.94 30.07

Competitive Comparison of Bang & Olufsen AS's Degree of Operating Leverage

For the Consumer Electronics subindustry, Bang & Olufsen AS'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.


Bang & Olufsen AS's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Bang & Olufsen AS's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Bang & Olufsen AS's Degree of Operating Leverage falls into.


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Bang & Olufsen AS Degree of Operating Leverage Calculation

Bang & Olufsen AS's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 4.119 (Feb. 2025) / 10.765 (Feb. 2024) - 1 )/( 362.727 (Feb. 2025) / 375.3 (Feb. 2024) - 1 )
=-0.6174/-0.0335
=18.43***

* 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.


Bang & Olufsen AS  (OTCPK:BGOUF) 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.


Bang & Olufsen AS Degree of Operating Leverage Related Terms

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Bang & Olufsen AS Business Description

Industry
Traded in Other Exchanges
Address
Bang og Olufsen Alle 1, Struer, DNK, DK-7600
Bang & Olufsen AS designs, develops, and markets audio and video products including music systems, loudspeakers, television sets, and multimedia products. Geographically, it derives a majority of its revenue from EMEA, Followed by Americas, and APAC. It generates maximum revenue from the Staged product category followed by On-the-go; Flexible Living Brand Partnering and other activities.