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Mercury Systems (FRA:MCY) Degree of Operating Leverage : -11.49 (As of Mar. 2025)


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What is Mercury Systems Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Mercury Systems's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -11.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:MCY's Degree of Operating Leverage is ranked better than
87.01% of 308 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs FRA:MCY: -11.49

Mercury Systems Degree of Operating Leverage Historical Data

The historical data trend for Mercury Systems'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.

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Mercury Systems Degree of Operating Leverage Chart

Mercury Systems Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.92 -1.21 -9.95 135.73 -39.33

Mercury Systems 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 105.04 -39.33 -17.92 12.55 -11.49

Competitive Comparison of Mercury Systems's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Mercury Systems'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.


Mercury Systems's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Degree of Operating Leverage distribution charts can be found below:

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


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Mercury Systems Degree of Operating Leverage Calculation

Mercury Systems'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
=( -49.457 (Mar. 2025) / -140.713 (Mar. 2024) - 1 )/( 823.697 (Mar. 2025) / 775.997 (Mar. 2024) - 1 )
=-0.6485/0.0615
=-10.55***

* 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.


Mercury Systems  (FRA:MCY) 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.


Mercury Systems Degree of Operating Leverage Related Terms

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Mercury Systems Business Description

Traded in Other Exchanges
Address
50 Minuteman Road, Andover, MA, USA, 01810
Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates, and delivers secure open architecture solutions powering a broad range of mission-critical applications in challenging and demanding environments. Its Mercury Processing Platform spans the full breadth of signal processing from radio frequency front end to the human-machine interface to convert meaningful data, gathered in remote and hostile environments, into critical decisions. The company manufactures components, products, modules, and subsystems and sells to defense prime contractors, the U.S. government, original equipment manufacturers, and commercial aerospace companies. Geographically, it derives maximum revenue from the United States.