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Keysight Technologies (MEX:KEYS) Degree of Operating Leverage : 3.82 (As of Oct. 2024)


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What is Keysight Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Keysight Technologies's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was 3.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MEX:KEYS's Degree of Operating Leverage is ranked worse than
72.62% of 2414 companies
in the Hardware industry
Industry Median: 1.025 vs MEX:KEYS: 3.82

Keysight Technologies Degree of Operating Leverage Historical Data

The historical data trend for Keysight Technologies'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.

Keysight Technologies Degree of Operating Leverage Chart

Keysight Technologies Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.90 1.75 2.60 6.41 3.82

Keysight Technologies Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 6.41 1.78 3.01 3.42 3.82

Competitive Comparison of Keysight Technologies's Degree of Operating Leverage

For the Scientific & Technical Instruments subindustry, Keysight Technologies'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.


Keysight Technologies's Degree of Operating Leverage Distribution in the Hardware Industry

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

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



Keysight Technologies Degree of Operating Leverage Calculation

Keysight Technologies's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 19009.799 (Oct. 2024) / 25906.055 (Oct. 2023) - 1 )/( 99736.341 (Oct. 2024) / 98641.592 (Oct. 2023) - 1 )
=-0.2662/0.0111
=-23.99***

* 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.


Keysight Technologies  (MEX:KEYS) 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.


Keysight Technologies Degree of Operating Leverage Related Terms

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Keysight Technologies Business Description

Traded in Other Exchanges
Address
1400 Fountaingrove Parkway, Santa Rosa, CA, USA, 95403-1738
Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.