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CMPO (CompoSecure) Degree of Operating Leverage : 22.81 (As of Mar. 2025)


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What is CompoSecure Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CompoSecure's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 22.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CMPO's Degree of Operating Leverage is ranked worse than
93.5% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs CMPO: 22.81

CompoSecure Degree of Operating Leverage Historical Data

The historical data trend for CompoSecure'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.

CompoSecure Degree of Operating Leverage Chart

CompoSecure Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.48 3.72 1.67 -2.56 -18.43

CompoSecure Quarterly Data
Dec19 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 3.07 7.60 -8.61 -18.43 22.81

Competitive Comparison of CompoSecure's Degree of Operating Leverage

For the Metal Fabrication subindustry, CompoSecure'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.


CompoSecure's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, CompoSecure's Degree of Operating Leverage distribution charts can be found below:

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


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CompoSecure Degree of Operating Leverage Calculation

CompoSecure'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
=( -47.115 (Mar. 2025) / 151.972 (Mar. 2024) - 1 )/( 376.385 (Mar. 2025) / 399.323 (Mar. 2024) - 1 )
=-1.31/-0.0574
=22.81***

* 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.


CompoSecure  (NAS:CMPO) 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.


CompoSecure Degree of Operating Leverage Related Terms

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


CompoSecure Business Description

Traded in Other Exchanges
N/A
Address
309 Pierce Street, Somerset, NJ, USA, 08873
CompoSecure Inc is engaged in designing and manufacturing premium financial cards. The Company's metal payment card technology and Arculus security and authentication capabilities deliver premium branded experiences which enable people to access and use their assets, and ensure trust at the point of a transaction. Its products include Metal Cards and Arculus, a digital security platform. It has two reportable segments: Payment Card and Arculus.
Executives
Adam Joseph Lowe officer: Chief Innovation Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Amanda Mandy Gourbault officer: Chief Revenue Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Gregoire Maes officer: Chief Operating Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Llr Equity Partners Iv, L.p. 10 percent owner 2929 ARCH STREET, SUITE 2700, PHILADELPHIA PA 19104
Michele Logan director, 10 percent owner C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Jonathan Wilk director, officer: Chief Executive Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Timothy Walter Fitzsimmons officer: Chief Financial Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Bleichroeder Lp 10 percent owner 1345 AVENUE OF THE AMERICAS, 47TH FLOOR, NEW YORK NY 10105
Roman Dbdr Tech Sponsor Llc 10 percent owner 2877 PARADISE ROAD, #702, LAS VEGAS NV 89109
Doll Dixon R Jr. 10 percent owner, officer: Co-Chief Executive Officer 4555 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Donald G Basile director, 10 percent owner, officer: See Remarks 4555 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Tikvah Management Llc 10 percent owner 5970 FAIRVIEW ROAD, SUITE 705, CHARLOTTE NC 28210
Paul Galant director 88 WEST PLUMERIA DRIVE, SAN JOSE CA 95134
Dixon Doll director 2420 SAND HILL RD, STE 200, MENLO PARK CA 94025
Steven J. Mclaughlin 10 percent owner 277 PARK AVENUE 29TH FLOOR, SUITE B, NEW YORK NY 10172