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CTS (CTS) Degree of Operating Leverage : -4.64 (As of Mar. 2025)


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What is CTS Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CTS's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -4.64. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CTS's Degree of Operating Leverage is ranked better than
81.36% of 2414 companies
in the Hardware industry
Industry Median: 1 vs CTS: -4.64

CTS Degree of Operating Leverage Historical Data

The historical data trend for CTS'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.

CTS Degree of Operating Leverage Chart

CTS 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 0.82 -10.53 -16.73 0.86 0.61

CTS 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 1.40 0.86 0.79 0.61 -4.64

Competitive Comparison of CTS's Degree of Operating Leverage

For the Electronic Components subindustry, CTS'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.


CTS's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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CTS Degree of Operating Leverage Calculation

CTS'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
=( 78.29 (Mar. 2025) / 69.54 (Mar. 2024) - 1 )/( 515.79 (Mar. 2025) / 530.178 (Mar. 2024) - 1 )
=0.1258/-0.0271
=-4.64***

* 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.


CTS  (NYSE:CTS) 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.


CTS Degree of Operating Leverage Related Terms

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


CTS Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » CTS Corp (NYSE:CTS) » Definitions » Degree of Operating Leverage
Traded in Other Exchanges
N/A
Address
4925 Indiana Avenue, Lisle, IL, USA, 60532
CTS Corp operates in the electronics industry. The company is a manufacturer of Sensors, Electronic components, and Actuators. It designs, manufactures, and sells a broad line of sensors, electronic components, and actuators mainly to original equipment manufacturers (OEM) for the aerospace and defense, industrial, information technology, medical, telecommunications, and transportation markets. Geographically, it derives a majority of its revenue from the United States and also has a presence in China; Singapore; the Czech Republic; Taiwan, Denmark, and other countries.
Executives
Kieran M O'sullivan director, officer: President & CEO 2375 CABOT DRIVE, LISLE IL 60532
Martin Baumeister officer: Senior Vice President 4925 INDIANA AVENUE, LISLE IL 60532
Ashish Agrawal officer: CFO 2375 CABOT DRIVE, LISLE IL 60525
Randy Lee Stone director 974 CENTRE ROAD, CRP 730, WILMINGTON DE 19805
Michael Edward Murray officer: Senior Vice President 4925 INDIANA AVENUE, LISLE IL 60532
Ye Jane Li director 200 FLYNN ROAD, CAMARILLO CA 93012-8790
Thomas Michael White officer: Controller and PAO 4925 INDIANA AVENUE, LISLE IL 60532
Donna Costello director 17 STEWART COURT, WESTWOOD NJ 07675
Scott D'angelo officer: VP & Secretary 4925 INDIANA AVENUE, LISLE IL 60532
Alfonso G Zulueta director 4925 INDIANA AVE, LISLE IL 60532
William S Johnson director C/O CABOT MICROELECTRONICS, 870 N. COMMONS DR, AURORA IL 60504
Gordon Hunter director 25950 ELENA RD, LOS ALTOS HILLS CA 94022
Diana M Murphy director C/O LANDSTAR SYSTEM INC, 13410 SUTTON PARK DR S, JACKSONVILLE FL 32224
Luis Francisco Machado officer: VP, General Counsel & Sec. 1142 W. BEARDSLEY AVENUE, ELKHART IN 46514
Rajeeb K Nath officer: Vice President 1142 WEST BEARDSLEY AVENUE, ELKHART IN 46514