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EVTC (Evertec) Degree of Operating Leverage : 4.78 (As of Mar. 2025)


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What is Evertec Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Evertec's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EVTC's Degree of Operating Leverage is ranked worse than
79.84% of 2668 companies
in the Software industry
Industry Median: 0.78 vs EVTC: 4.78

Evertec Degree of Operating Leverage Historical Data

The historical data trend for Evertec'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.

Evertec Degree of Operating Leverage Chart

Evertec 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 0.50 2.41 8.88 -4.85 3.00

Evertec 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 -3.29 -2.24 0.99 3.00 4.78

Competitive Comparison of Evertec's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Evertec'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.


Evertec's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Evertec Degree of Operating Leverage Calculation

Evertec'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
=( 211.956 (Mar. 2025) / 115.768 (Mar. 2024) - 1 )/( 868.96 (Mar. 2025) / 740.213 (Mar. 2024) - 1 )
=0.8309/0.1739
=4.78***

* 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.


Evertec  (NYSE:EVTC) 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.


Evertec Degree of Operating Leverage Related Terms

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


Evertec Business Description

Industry
Traded in Other Exchanges
Address
Cupey Center Building, Road 176, Kilometer 1.3, San Juan, PRI, 00926
Evertec Inc is a transaction processing business in Latin America and the Caribbean. Its business segments are Merchant Acquiring, Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, and Business Solutions which derive maximum revenue. The company serves a diversified customer base of financial institutions, merchants, corporations, and government agencies with mission-critical technology solutions that enable them to issue, process, and accept transactions securely. It derives maximum revenue from Latin America Payments and Solutions. Geographically, it operates in Puerto Rico, Caribbean, and Latin America.
Executives
Ivan Pagan director PO BOX 364527, SAN JUAN PR 00936-4527
Miguel Vizcarrondo officer: Executive Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Luis A Rodriguez-gonzalez officer: General Counsel & Secretary PO BOX 364527, SAN JUAN PR 00936-4527
Diego Viglianco officer: EVP & Chief Operating Officer PO BOX 364527, SAN JUAN PR 00936
Paola Perez-surillo officer: Senior Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Morgan M Schuessler director, officer: President & CEO PO BOX 364527, SAN JUAN PR 00936-4527
Joaquin A. Castrillo-salgado officer: Vice President of Finance PO BOX 364527, SAN JUAN PR 00936-4527
Aldo J. Polak-gelber director PO BOX 364527, SAN JUAN PR 00936-4527
Frank D. D'angelo director PO BOX 364527, SAN JUAN PR 00936-4527
Virginia Gambale director C/O JETBLUE AIRWAYS CORP., 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Popular Inc 10 percent owner P.O. BOX 362708, SAN JUAN PR 00936-2708
Guillermo Rospigliosi officer: Executive Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Castillo Rodrigo Del officer: Executive Vice President PO BOX 364527, SAN JUAN PR 00936-4527
Kelly Hefner Barrett director 4630 WYNMEADE PARK, MARIETTA GA 30067
Philip E. Steurer officer: Chief Operating Officer PO BOX 364527, SAN JUAN PR 00936-4527