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DXC (DXC Technology Co) Degree of Operating Leverage : -20.59 (As of Mar. 2025)


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What is DXC Technology Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. DXC Technology Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -20.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DXC's Degree of Operating Leverage is ranked better than
92.76% of 2665 companies
in the Software industry
Industry Median: 0.79 vs DXC: -20.59

DXC Technology Co Degree of Operating Leverage Historical Data

The historical data trend for DXC Technology Co'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.

DXC Technology Co Degree of Operating Leverage Chart

DXC Technology Co Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.81 -3.94 13.38 30.15 -20.59

DXC Technology Co 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 30.15 31.36 29.03 27.93 -20.59

Competitive Comparison of DXC Technology Co's Degree of Operating Leverage

For the Information Technology Services subindustry, DXC Technology Co'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.


DXC Technology Co's Degree of Operating Leverage Distribution in the Software Industry

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

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


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DXC Technology Co Degree of Operating Leverage Calculation

DXC Technology Co'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
=( 895 (Mar. 2025) / 407 (Mar. 2024) - 1 )/( 12871 (Mar. 2025) / 13667 (Mar. 2024) - 1 )
=1.199/-0.0582
=-20.59***

* 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.


DXC Technology Co  (NYSE:DXC) 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.


DXC Technology Co Degree of Operating Leverage Related Terms

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


DXC Technology Co Business Description

Industry
Address
20408 Bashan Drive, Suite 231, Ashburn, VA, USA, 20147
DXC Technology Co is a vendor-independent IT services provider. The company's operating segment includes Global Business Services (GBS) and Global Infrastructure Services (GIS). It generates maximum revenue from the GIS segment. GIS offerings include Cloud and Security; IT Outsourcing and Modern Workplace. Geographically, it derives a majority of revenue from the Other Europe region.
Executives
Christopher Drumgoole officer: EVP, Chief Operating Officer C/O DXC TECHNOLOGY COMPANY, 1775 TYSONS BOOULEVARD, TYSONS VA 22102
Mary E Finch officer: See Remarks C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90064
Christopher Anthony Voci officer: SVP, Controller and PAO C/O ORBITAL ATK, INC., 45101 WARP DRIVE, DULLES VA 20166
Deckelman William L Jr officer: EVP & General Counsel
Andrew Wilson officer: Global Lead, Modern Workplace C/O DXC TECHNOLOGY COMPANY, 20408 BASHAN DRIVE, SUITE 231, ASHBURN VA 02147
Howard Boville officer: Global Lead Apps Services & AI C/O DXC TECHNOLOGY COMPANY, 20408 BASHAN DRIVE, SUITE 231, ASHBURN VA 20147
Pinkie Dent Mayfield director 1420 FIFTH AVENUE, SUITE 2000, SEATTLE WA 98101
Del Bene Robert F officer: EVP, Chief Financial Officer IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
James Michael Brady officer: Chief Operating Officer C/O DXC TECHNOLOGY COMPANY, 20408 BASHAN DRIVE, SUITE 231, ASHBURN VA 20147
Anthony Gonzalez director C/O DXC TECHNOLOGY COMPANY, 20408 BASHAN DRIVE, SUITE 231, ASHBURN VA 20147
Karl Racine director 5269 W. 62ND AVENUE, ARVADA CO 80003
Raul J Fernandez director 11600 SUNRISE VALLEY DR, RESTON VA 20191
Carrie W. Teffner director 200 DOMAIN DRIVE, STRATHAM NH 03885
Dawn Rogers director 235 EAST 42ND STREET, NEW YORK NY 10017
Akihiko Washington director C/O DXC TECHNOLOGY COMPANY, 1775 TYSONS BOOULEVARD, TYSONS VA 22102