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Flex (FLEX) Degree of Operating Leverage : -18.50 (As of Mar. 2025)


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What is Flex Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Flex's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -18.50. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FLEX's Degree of Operating Leverage is ranked better than
91.76% of 2414 companies
in the Hardware industry
Industry Median: 1 vs FLEX: -18.50

Flex Degree of Operating Leverage Historical Data

The historical data trend for Flex'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.

Flex Degree of Operating Leverage Chart

Flex 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 -277.04 13.81 -0.52 2.16 -18.50

Flex 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 2.16 0.93 -0.10 -29.42 -18.50

Competitive Comparison of Flex's Degree of Operating Leverage

For the Electronic Components subindustry, Flex'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.


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

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

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


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Flex Degree of Operating Leverage Calculation

Flex'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
=( 1241 (Mar. 2025) / 873 (Mar. 2024) - 1 )/( 25813 (Mar. 2025) / 26415 (Mar. 2024) - 1 )
=0.4215/-0.0228
=-18.50***

* 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.


Flex  (NAS:FLEX) 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.


Flex Degree of Operating Leverage Related Terms

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


Flex Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Flex Ltd (NAS:FLEX) » Definitions » Degree of Operating Leverage
Traded in Other Exchanges
Address
12455 Research Boulevard, Suite 300, Austin, TX, USA, 78759
Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial.
Executives
Erin Mcsweeney director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
David Scott Offer officer: EVP, General Counsel 6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Kwang Hooi Tan officer: Group President 6201 AMERICA CENTER DRIVE, ATTN: LEGAL, SAN JOSE CA 95002
Daniel Wendler officer: Chief Accounting Officer 6201 AMERICA CENTER DRIVE, ATTN: LEGAL, SAN JOSE CA 95002
Michael P Hartung officer: President, Agility Solutions 6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Revathi Advaithi director, officer: Chief Executive Officer EATON HOUSE, 30 PEMBROKE ROAD, DUBLIN 4 L2 -
Lay Koon Tan director C/O STATS CHIPPAC LTD., 10 ANG MO KIO ST 65 TECHPOINT #05-17/20, SINGAPORE U0 569059
Stevens Charles K. Iii director 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Rebecca Sidelinger officer: Group President 6201 AMERICA CENTER DRIVE, ATTN: LEGAL, SAN JOSE CA 95002
Paul Lundstrom officer: Chief Financial Officer 222 N. SEPULVEDA BLVD., SUITE 500, EL SEGUNDO CA 90245
Michael D Capellas director C/O MCI, 22001 LOUDOUN COUNTY PARKWAY, AXBURN VA 20147
Maryrose Sylvester director C/O 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Pat Ward director 500 JACKSON STREET, COLUMBUS IN 47201
Francois Barbier officer: President, Global Operations ONE MARINA BOULEVARD, #28-00, SINGAPORE U0 018989
David P Bennett officer: Chief Accounting Officer 3616 NICOLE AVE, PLEASANTON CA 94588