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CMTL (Comtech Telecommunications) Degree of Operating Leverage : 2,040.44 (As of Jan. 2025)


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What is Comtech Telecommunications Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Comtech Telecommunications's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 2,040.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CMTL's Degree of Operating Leverage is ranked worse than
99.88% of 2416 companies
in the Hardware industry
Industry Median: 1.01 vs CMTL: 2040.44

Comtech Telecommunications Degree of Operating Leverage Historical Data

The historical data trend for Comtech Telecommunications'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.

Comtech Telecommunications Degree of Operating Leverage Chart

Comtech Telecommunications Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.27 95.27 3.25 -4.17 -250.71

Comtech Telecommunications Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 -9.71 -23.28 -250.71 -656.25 2,040.44

Competitive Comparison of Comtech Telecommunications's Degree of Operating Leverage

For the Communication Equipment subindustry, Comtech Telecommunications'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.


Comtech Telecommunications's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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Comtech Telecommunications Degree of Operating Leverage Calculation

Comtech Telecommunications's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -257.313 (Jan. 2025) / 0.969 (Jan. 2024) - 1 )/( 496.641 (Jan. 2025) / 571.266 (Jan. 2024) - 1 )
=-266.5449/-0.1306
=2,040.44***

* 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.


Comtech Telecommunications  (NAS:CMTL) 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.


Comtech Telecommunications Degree of Operating Leverage Related Terms

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


Comtech Telecommunications Business Description

Traded in Other Exchanges
Address
305 North 54th Street, Chandler, AZ, USA, 85226
Comtech Telecommunications Corp is a provider of modern communications solution incorporated in USA. The company is engaged in designing, developing, producing and marketing products, systems, and services for communications solutions. It is engaged in two business segments, Satellite and Space Communications and Terrestrial and Wireless Networks. It's Space and satellite is USA based providers of modems and high-power amplifiers, a market leader in troposcatter technologies, and serves some of the world's defense contractors and allied foreign governments. Terrestrial and Wireless Networks segment is a provider of next generation 911 infrastructure and solutions for state and local governments and carriers. Majority of sales are generated from Satellite and Space Communications segment.
Executives
Wendi B. Carpenter director 2401 EAST 86TH ST., BLOOMINGTON MN 55425
Mark R. Quinlan director 150 EAST 52ND STREET, 21ST FLOOR, NEW YORK NY 10022
Bruce T Crawford director 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Ellen M. Lord director 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Maria Hedden officer: Chief Operating Officer 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Donald E. Walther officer: Chief Legal Officer 500 108TH AVENUE NE, SUITE 1500, BELLEVUE WA 98004
Michael Bondi officer: Corporate Controller 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Ken Allen Peterman director 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Yelena Simonyuk officer: Chief Legal Officer 68 S. SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Michael Porcelain officer: VP of Finance & Internal Audit 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Yacov A Shamash director
Lisa /adv Lesavoy director 166 E 63RD ST, NEW YORK NY 10021
Judy Chambers director 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Richard L Burt officer: Sr. Vice President 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
John Branscum officer: Sr. Vice President COMTECH TELECOMMUNICATIONS CORP., 68 SOUTH SERVICE RD., SUITE 230, MELVILLE NY 11747