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BHE (Benchmark Electronics) Degree of Operating Leverage : 2.25 (As of Mar. 2025)


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What is Benchmark Electronics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Benchmark Electronics's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BHE's Degree of Operating Leverage is ranked worse than
65.4% of 2413 companies
in the Hardware industry
Industry Median: 1 vs BHE: 2.25

Benchmark Electronics Degree of Operating Leverage Historical Data

The historical data trend for Benchmark Electronics'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.

Benchmark Electronics Degree of Operating Leverage Chart

Benchmark Electronics Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.57 11.17 2.88 -9.94 0.31

Benchmark Electronics 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 -3.12 -1.74 0.24 0.31 2.25

Competitive Comparison of Benchmark Electronics's Degree of Operating Leverage

For the Electronic Components subindustry, Benchmark Electronics'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.


Benchmark Electronics's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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Benchmark Electronics Degree of Operating Leverage Calculation

Benchmark Electronics'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
=( 98.162 (Mar. 2025) / 117.604 (Mar. 2024) - 1 )/( 2612.294 (Mar. 2025) / 2819.856 (Mar. 2024) - 1 )
=-0.1653/-0.0736
=2.25***

* 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.


Benchmark Electronics  (NYSE:BHE) 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.


Benchmark Electronics Degree of Operating Leverage Related Terms

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


Benchmark Electronics Business Description

Traded in Other Exchanges
Address
56 South Rockford Drive, Tempe, AZ, USA, 85288
Benchmark Electronics Inc is engaged in product designing, engineering services, technology solutions, and manufacturing services (electronic manufacturing services (EMS) and precision technology services). It serves various industries, including aerospace & defense (A&D), medical technologies, complex industrials, semiconductor capital equipment, next-generation telecommunications, and high-end computing. Its geographical segments are the Americas, Asia and Europe of which key revenue is derived from the Americas.
Executives
Jeff Benck director, officer: President and CEO BENCHMARK ELECTRONICS, INC., 56 SOUTH ROCKFORD DRIVE, TEMPE AZ 85281
Rhonda R Turner officer: Chief Human Resources Officer 20410 NORTH 19TH AVENUE, STE 200, PHOENIX AZ 85027
Stephen J Beaver officer: VP and General Counsel 7440 E. EDWARD LANE, SCOTTSDALE AZ 85250
Jeffrey Stephen Mccreary director C/O MIPS TECHNOLOGIES, INC., 955 EAST ARQUES AVENUE, SUNNYVALE CA 94085
Jan M Janick officer: Executive VP 56 SOUTH ROCKFORD DRIVE, TEMPE AZ 85281
David Valkanoff officer: EVP, Chief Operating Officer C/O BENCHMARK ELECTRONICS INC., 56 SOUTH ROCKFORD DRIVE, TEMPE AZ 85288
David Moezidis officer: EVP, Chief Commercial Officer C/O BENCHMARK ELECTRONICS INC., 56 SOUTH ROCKFORD DRIVE, TEMPE AZ 85288
Douglas Britt director 1500 WEST UNIVERSITY PARKWAY, SARASOTA FL 34243
Ramesh Gopalakrishnan director 8501 NORTH SCOTTSDALE ROAD, SUITE 100, SCOTTSDALE AZ 85253
Greef-safft Anne De director 11 KEEWAYDIN DRIVE, SUITE 300, SALEM NH 03079
Roop Kalyan Lakkaraju officer: CFO BENCHMARK ELECTRONICS, INC., 56 SOUTH ROCKFORD DRIVE, TEMPE AZ 85281
Lynn A Wentworth director CINCINNATI BELL INC, P O BOX 2301, CINCINNATI OH 45201
Lisa K Weeks officer: Vice President 56 SOUTH ROCKFORD DRIVE, TEMPE AZ 85281
Douglas G Duncan director 1715 AARON BRENNER DR STE 600, MEMPHIS TN 38120
Robert K Gifford director 370 WABASHA STREET NORTH, ST. PAUL MN 55102