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EVC (Entravision Communications) Degree of Operating Leverage : 4.43 (As of Dec. 2024)


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What is Entravision Communications Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Entravision Communications's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 4.43. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EVC's Degree of Operating Leverage is ranked worse than
71.07% of 999 companies
in the Media - Diversified industry
Industry Median: 1.15 vs EVC: 4.43

Entravision Communications Degree of Operating Leverage Historical Data

The historical data trend for Entravision Communications'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.

Entravision Communications Degree of Operating Leverage Chart

Entravision Communications 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 9.89 5.18 0.80 21.08 4.43

Entravision Communications Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 21.08 -6.80 -5.22 -6.56 4.43

Competitive Comparison of Entravision Communications's Degree of Operating Leverage

For the Advertising Agencies subindustry, Entravision Communications'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.


Entravision Communications's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Entravision Communications's Degree of Operating Leverage distribution charts can be found below:

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


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Entravision Communications Degree of Operating Leverage Calculation

Entravision Communications's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -49.713 (Dec. 2024) / -24.705 (Dec. 2023) - 1 )/( 364.948 (Dec. 2024) / 297.043 (Dec. 2023) - 1 )
=1.0123/0.2286
=4.43***

* 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.


Entravision Communications  (NYSE:EVC) 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.


Entravision Communications Degree of Operating Leverage Related Terms

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


Entravision Communications Business Description

Traded in Other Exchanges
Address
1 Estrella Way, Burbank, CA, USA, 91504
Entravision Communications Corp owns and operates Spanish language television and radio stations in the United States. The Company also owns and operates a smaller group of television stations that broadcast English language programming and has operations that provide programmatic advertising technology and services. The Company has organized its operations into two reportable segments. Its media segment includes its television, radio, and digital marketing operations. Its advertising and technology services segment provides programmatic advertising and technology services. The company generates the majority of its revenue from the Media segment. Geographically, the company generates the majority of its revenue from the United States.
Executives
Karl Alonso Meyer officer: Chief Revenue Officer 2425 OLYMPIC BOULEVARD, SUITE 6000 WEST, SANTA MONICA CA 90404
Michael J Christenson officer: Chief Executive Officer C/O ENTRAVISION COMMUNICATIONS CORP, 2425 OLYMPIC BLVD, STE 6000W, SANTA MONICA CA 90404
Lara Sweet director C/O SNAP INC., 2772 DONALD DOUGLAS LOOP NORTH, SANTA MONICA CA 90405
Thomas Strickler director C/O ENTRAVISION COMMUNICATIONS CORP, 2425 OLYMPIC BLVD STE 6000W, SANTA MONICA CA 90404
Brad Bender director C/O ENTRAVISION COMMUNICATIONS CORP, STE 6000W, SANTA MONICA CA 90404
Christopher T Young officer: President, Outdoor Division
Saldivar Von Wuthenau Juan director 2425 OLYMPIC BLVD., SUITE 6000W, SANTA MONICA CA 90404
Alexandra Seros 10 percent owner C/O ENTRAVISION COMMUNICATIONS CORP., 2425 OLYMPIC BLVD STE 6000 W, SANTA MONICA CA 90404
Seros Ulloa Family Trust Of 1996 10 percent owner C/O ENTRAVISION COMMUNICATIONS CORP., 2425 OLYMPIC BLVD STE 6000 W, SANTA MONICA CA 90404
Paul A Zevnik director ZEVNIK HORTON LLP, 1299 PENNSYLVANIA AVE NW 960E, WASHINGTON DC 20004
Gilbert R Vasquez director 2425 OLYMPIC BLVD., SUITE 6000W, SANTA MONICA CA 90404
Jeffrey A Liberman officer: President, Radio Division ENTRAVISION COMMUNICATIONS CORP, 2425 OLYMPIC BLVD, SANTA MONICA CA 90404
Arnoldo Avalos director 2425 OLYMPIC BLVD., SUITE 6000 WEST, SANTA MONICA CA 90404
Fehmi Alexander Zeko director C/O ATHENE HOLDING LTD., WASHINGTON HOUSE, 16 CHURCH STREET, HAMILTON D0 HM 11
Mario M. Carrera officer: Chief Revenue Officer 2425 OLYMPIC BLVD., SUITE 6000 WEST, SANTA MONICA CA 90404