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LDOS (Leidos Holdings) Degree of Operating Leverage : 19.59 (As of Mar. 2025)


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What is Leidos Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Leidos Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 19.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LDOS's Degree of Operating Leverage is ranked worse than
91.77% of 2662 companies
in the Software industry
Industry Median: 0.795 vs LDOS: 19.59

Leidos Holdings Degree of Operating Leverage Historical Data

The historical data trend for Leidos Holdings'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.

Leidos Holdings Degree of Operating Leverage Chart

Leidos Holdings Annual Data
Trend Jan15 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 -0.46 1.67 -1.20 -5.98 24.96

Leidos Holdings 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 -3.72 -2.40 32.01 24.96 19.59

Competitive Comparison of Leidos Holdings's Degree of Operating Leverage

For the Information Technology Services subindustry, Leidos Holdings'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.


Leidos Holdings's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Leidos Holdings Degree of Operating Leverage Calculation

Leidos Holdings'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
=( 1942 (Mar. 2025) / 771 (Mar. 2024) - 1 )/( 16932 (Mar. 2025) / 15714 (Mar. 2024) - 1 )
=1.5188/0.0775
=19.59***

* 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.


Leidos Holdings  (NYSE:LDOS) 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.


Leidos Holdings Degree of Operating Leverage Related Terms

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


Leidos Holdings Business Description

Industry
Traded in Other Exchanges
Address
1750 Presidents Street, Reston, VA, USA, 20190
Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil, and health markets, both domestically and internationally. Company customer includes the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Veterans Affairs ("VA"), and many other U.S. civilian, state and local government agencies, etc. The company is engaged in four reportable segments; National Security & Digital, Health & Civil, Commercial & International and Defense Systems. It provides a wide array of scientific, engineering and technical services and solutions across these reportable segments.
Executives
Kovarik Robert C Jr director C/O ALLIANCE BANKSHARES CORPORATION, 14200 PARK MEADOW DR #200S, CHANTILLY VA 20151
Noel B Williams director 1750 PRESIDENTS STREET, RESTON VA 20190
Roy E Stevens officer: Chief of Business Development 11951 FREEDOM DRIVE, RESTON VA 20190
Surya N Mohapatra director 3 GIRALDA FARMS, MADISON NJ 07940
Gary Stephen May director 11951 FREEDOM DRIVE, RESTON VA 20190
Thomas Arthur Bell director, officer: CEO 1750 PRESIDENTS STREET, RESTON VA 20190
Susan M Stalnecker director TWO N NINTHST, ALLENTOWN PA 18101
David G Fubini director D.G. FUBINI CONSULTANTS, LLC, 80 SEARS ROAD, BROOKLINE MA 02445
Miriam E John director 7011 EAST AVENUE, LIVERMORE CA 94550
James Robert Moos officer: Group President 11951 FREEDOM DRIVE, RESTON VA 20190
Cindy Gruensfelder officer: Executive Vice President 1750 PRESIDENTS STREET, RESTON VA 20190
Kraemer Harry M Jansen Jr director DENTSPLY SIRONA INC., 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Gregory R Dahlberg director 11951 FREEDOM DRIVE, RESTON VA 20190
Howe Jerald S Jr officer: Executive VP & General Counsel
Robert S Shapard director P O BOX 696000, SANANTONIO TX 782696000