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AVSR (Avistar Communications) Degree of Operating Leverage : 0.00 (As of Mar. 2012)


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What is Avistar Communications Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Avistar Communications's Degree of Operating Leverage for the quarter that ended in Mar. 2012 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AVSR's Degree of Operating Leverage is not ranked *
in the Hardware industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Operating Leverage only.

Avistar Communications Degree of Operating Leverage Historical Data

The historical data trend for Avistar Communications'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.

Avistar Communications Degree of Operating Leverage Chart

Avistar Communications Annual Data
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Avistar Communications Quarterly Data
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Competitive Comparison of Avistar Communications's Degree of Operating Leverage

For the Communication Equipment subindustry, Avistar Communications'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.


Avistar Communications's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Avistar Communications's Degree of Operating Leverage distribution charts can be found below:

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


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Avistar Communications Degree of Operating Leverage Calculation

Avistar Communications's Degree of Operating Leverage for the quarter that ended in Mar. 2012 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -5.221 (Mar. 2012) / -8.697 (Mar. 2011) - 1 )/( 9.055 (Mar. 2012) / 6.271 (Mar. 2011) - 1 )
=-0.3997/0.4439
=-0.90***

* 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.


Avistar Communications  (OTCPK:AVSR) 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.


Avistar Communications Degree of Operating Leverage Related Terms

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Avistar Communications Business Description

Traded in Other Exchanges
N/A
Address
1855 South Grant Street, 4th Floor, San Mateo, CA, USA, 94402
Avistar Communications Corp creates technology that provides the missing critical element in unified communications: bringing people in organizations face-to-face, through enhanced communications for the true collaboration anytime, anyplace. The company's solutions include Bandwidth Management, CEBP, Firewall Traversal and Enterprise Endpoints. Its products include Avistar C3 Communicator, Avistar C3 Conference, Avistar C3 Command, Avistar C3 Call Control and Avistar C3 Media Engine.
Executives
R Stephen Heinrichs director, 10 percent owner 141 CASPIAN COURT, SUNNYVALE CA 94089
Jefferies Financial Group Inc. 10 percent owner 520 MADISON AVENUE, NEW YORK NY 10022
Phlcorp Holding Llc 10 percent owner 529 EAST SOUTH TEMPLE, SALT LAKE CITY UT 84102
Baldwin Enterprises, Inc. 10 percent owner 529 EAST SOUTH TEMPLE, SALT LAKE CITY UT 84102
Robert P Latta director 650 PAGE MILL ROAD, PALO ALTO CA 94304

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