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KVHI (KVH Industries) Degree of Operating Leverage : 3.52 (As of Mar. 2025)


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What is KVH Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. KVH Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KVHI's Degree of Operating Leverage is ranked worse than
66.94% of 366 companies
in the Telecommunication Services industry
Industry Median: 1.405 vs KVHI: 3.52

KVH Industries Degree of Operating Leverage Historical Data

The historical data trend for KVH Industries'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.

KVH Industries Degree of Operating Leverage Chart

KVH Industries 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 27.28 27.57 5.71 -81.26 1.95

KVH Industries 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 718.22 449.64 -31.23 1.95 3.52

Competitive Comparison of KVH Industries's Degree of Operating Leverage

For the Telecom Services subindustry, KVH Industries'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.


KVH Industries's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, KVH Industries's Degree of Operating Leverage distribution charts can be found below:

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


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KVH Industries Degree of Operating Leverage Calculation

KVH Industries'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
=( -10.293 (Mar. 2025) / -19.933 (Mar. 2024) - 1 )/( 109.975 (Mar. 2025) / 127.503 (Mar. 2024) - 1 )
=-0.4836/-0.1375
=3.52***

* 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.


KVH Industries  (NAS:KVHI) 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.


KVH Industries Degree of Operating Leverage Related Terms

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


KVH Industries Business Description

Traded in Other Exchanges
N/A
Address
50 Enterprise Center, Middletown, RI, USA, 02842
KVH Industries Inc provides integrated, end-to-end services, software, and hardware that support its customers' need for access to the Internet, VoIP, operations content, and entertainment services. It offers high-speed Internet and Voice over Internet Protocol (VoIP) services via satellite and integrated 5G/LTE cellular communications to mobile users at sea and on land. The company also provides commercially licensed entertainment, including news, sports, music, and movies, to commercial and leisure customers in the maritime, hotel, and retail markets. It operates in several geographic areas, including internationally. Revenues are generated from international locations, mainly consisting of Singapore, Canada, South America, European Union and other European countries, and other regions.
Executives
Brent C Bruun officer: Interim CEO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Felise Feingold officer: SVP General Counsel 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Stephen H Deckoff director, 10 percent owner 1 SOUND SHORE DRIVE, SUITE 200, GREENWICH CT 06830
Robert J Balog officer: Chief Technology Officer` 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Roger Kuebel officer: CFO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Black Diamond Capital Management, L.l.c. 10 percent owner 2187 ATLANTIC STREET, 9TH FLOOR, STAMFORD CT 06902
Needham Group, Inc. 10 percent owner 445 PARK AVENUE, NEW YORK NY 10022
James S Dodez director 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Cielo Hernandez director C/O XL FLEET CORP., 145 NEWTON STREET, BOSTON MA 02135
Jennifer Louise Baker officer: VP/CAO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
David B. Kagan director 300 HOLIDAY SQUARE BLVD., COVINGTON LA 70433
David Tolley director C/O THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Daniel R Conway officer: EVP Inertial Navigation C/O KVH INDUSTRIES INC, 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
George A Needham 10 percent owner C/O NEEDHAM & COMPANY, LLC, 445 PARK AVE, NEW YORK NY 10022
Kits Van Heyningen Martin other: Sr. Advisor 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842