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ISSC (Innovative Solutions and Support) Degree of Operating Leverage : 1.10 (As of Mar. 2025)


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What is Innovative Solutions and Support Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Innovative Solutions and Support's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Innovative Solutions and Support's Degree of Operating Leverage or its related term are showing as below:

ISSC's Degree of Operating Leverage is ranked worse than
51.46% of 309 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs ISSC: 1.10

Innovative Solutions and Support Degree of Operating Leverage Historical Data

The historical data trend for Innovative Solutions and Support'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.

Innovative Solutions and Support Degree of Operating Leverage Chart

Innovative Solutions and Support Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.47 6.27 4.33 0.37 0.62

Innovative Solutions and Support 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 0.76 0.70 0.62 0.16 1.10

Competitive Comparison of Innovative Solutions and Support's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Innovative Solutions and Support'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.


Innovative Solutions and Support's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where Innovative Solutions and Support's Degree of Operating Leverage falls into.


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Innovative Solutions and Support Degree of Operating Leverage Calculation

Innovative Solutions and Support'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
=( 14.709 (Mar. 2025) / 8.939 (Mar. 2024) - 1 )/( 65.056 (Mar. 2025) / 41 (Mar. 2024) - 1 )
=0.6455/0.5867
=1.10***

* 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.


Innovative Solutions and Support  (NAS:ISSC) 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.


Innovative Solutions and Support Degree of Operating Leverage Related Terms

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Innovative Solutions and Support Business Description

Traded in Other Exchanges
N/A
Address
720 Pennsylvania Drive, Exton, PA, USA, 19341
Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.
Executives
Christopher Harborne 10 percent owner 23F M THAI TOWER, ALL SEASONS PLACE, 87 WIRELESS ROAD, BANGKOK W1 10300
Glen R Bressner director 720 PENNSYLAVANIA DR, EXTON PA 19341
Estate Of Geoffrey S. M. Hedrick 10 percent owner C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Winston J Churchill director C/O SCP PARTNERS, SUITE 300, 1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Michael Linacre officer: Chief Financial Officer 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Parizad Olver director C/O SEMPER PARATUS ACQUISITION CORP., 767 THIRD AVENUE, 38TH FLOOR, NEW YORK NY 10017
Mittelstaedt Robert E Jr director
Stephen L Belland director 5717 COMPASS COURT, CAPE CORAL FL 33914
Roger Anthony Carolin director 1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Relland Winand officer: Chief Financial Officer C/O INNOVATIVE SOLUTIONS & SUPPORT INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Shahram Askarpour officer: President C/O INNOVATIVE SOLUTIONS & SUPPORT, INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Ronald Albrecht officer: Chief Financial Officer C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Robert Mionis director
John C Long officer: Chief Financial Officer 2400 BERNVILLE ROAD, READING PA 19612
Raymond J Wilson director 720 PENNSYLVANIA DRIVE, EXTON PA 19341