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ATUS (Altice USA) Degree of Operating Leverage : 2.19 (As of Mar. 2025)


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What is Altice USA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Altice USA's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ATUS's Degree of Operating Leverage is ranked worse than
56.56% of 366 companies
in the Telecommunication Services industry
Industry Median: 1.405 vs ATUS: 2.19

Altice USA Degree of Operating Leverage Historical Data

The historical data trend for Altice USA'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.

Altice USA Degree of Operating Leverage Chart

Altice USA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 8.98 16.59 6.41 1.15 1.43

Altice USA 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 -0.40 1.71 4.68 1.43 2.19

Competitive Comparison of Altice USA's Degree of Operating Leverage

For the Telecom Services subindustry, Altice USA'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.


Altice USA's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Altice USA's Degree of Operating Leverage distribution charts can be found below:

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


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Altice USA Degree of Operating Leverage Calculation

Altice USA'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
=( 1594.43 (Mar. 2025) / 1734.034 (Mar. 2024) - 1 )/( 8855.764 (Mar. 2025) / 9194.021 (Mar. 2024) - 1 )
=-0.0805/-0.0368
=2.19***

* 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.


Altice USA  (NYSE:ATUS) 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.


Altice USA Degree of Operating Leverage Related Terms

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


Altice USA Business Description

Traded in Other Exchanges
Address
1 Court Square West, Long Island City, New York, NY, USA, 11101
Altice Europe acquired privately held US cable company Suddenlink in 2015 and Cablevision in 2016. Suddenlink's networks provide television, internet access, and phone services to roughly 4.5 million US homes and businesses located primarily in smaller markets, with major clusters in Texas, West Virginia, Idaho, Arizona, and Louisiana. Cablevision provides comparable services to about 5.5 million homes and business in the New York City metro area. Both regions now operate under the Optimum brand name. Altice Europe spun off Altice USA, which includes both the Suddenlink and Cablevision operations, to shareholders in 2018. Altice USA also owns News 12 Networks, which broadcasts local news in New York.
Executives
Next Alt S.a.r.l. director, 10 percent owner 5, RUE EUGENE RUPPERT, GRAND DUCHY OF LUXEMBOURG N4 L-2453
Alexandre Fonseca director 1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Marc Sirota officer: Chief Financial Officer 1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Patrick Drahi director, 10 percent owner WIESTISTRASSE 14, ZERMATT V8 3920
Dennis Mathew officer: Chief Executive Officer 1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Maria Bruzzese officer: Chief Accounting Officer 1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Charles Stewart officer: Co-President & CFO 1111 STEWART AVENUE, BETHPAGE NY 11714
Mark Mullen director 1111 STEWART AVENUE, BETHPAGE NY 11714
Susan C Schnabel director C/O CREDIT SUISSE FIRST BOSTON, 11 MADISON AVE, NEW YORK NY 10010
Gerrit Jan Bakker director 15 RUE PIERRE FATIO 6TH FLOOR, GENEVA V8 1204
Raymond Svider director 650 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10022
Michael Olsen officer: Acting Gen Counsel & Secretary 1 COURT SQUARE W, LONG ISLAND CITY NY 11101
Michael Grau officer: Chief Financial Officer 1 COURT SQUARE W, LONG ISLAND CITY NY 11101
Soroban Opportunities Master Fund Lp 10 percent owner WALKERS CORPORATE LIMITED, CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD, GEORGE TOWN E9 KY1-9008
Soroban Capital Gp Llc 10 percent owner 55 WEST 46TH STREET, 32ND FLOOR, NEW YORK NY 10036