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ePlus (PLUS) Degree of Operating Leverage : 1.19 (As of Mar. 2025)


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What is ePlus Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ePlus's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PLUS's Degree of Operating Leverage is ranked worse than
57.65% of 2666 companies
in the Software industry
Industry Median: 0.785 vs PLUS: 1.19

ePlus Degree of Operating Leverage Historical Data

The historical data trend for ePlus'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.

ePlus Degree of Operating Leverage Chart

ePlus Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.33 2.27 0.91 -0.18 1.19

ePlus 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 -0.18 -27.00 2.74 9.71 1.19

Competitive Comparison of ePlus's Degree of Operating Leverage

For the Software - Application subindustry, ePlus'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.


ePlus's Degree of Operating Leverage Distribution in the Software Industry

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

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


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ePlus Degree of Operating Leverage Calculation

ePlus'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
=( 151.05 (Mar. 2025) / 164.87 (Mar. 2024) - 1 )/( 2068.789 (Mar. 2025) / 2225.302 (Mar. 2024) - 1 )
=-0.0838/-0.0703
=1.19***

* 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.


ePlus  (NAS:PLUS) 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.


ePlus Degree of Operating Leverage Related Terms

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


ePlus Business Description

Industry
Traded in Other Exchanges
N/A
Address
13595 Dulles Technology Drive, Herndon, VA, USA, 20171-3413
ePlus Inc is a provider of technology solutions across the IT spectrum, spanning security, cloud, data center, networking, collaboration, AI, service provider, and critical infrastructure, and emerging solutions, to domestic and foreign organizations across all industry segments. Its solutions leverage a broad range of professional, consultative, and managed services across the technology spectrum. The company possesses top-level engineering certifications with a broad range of IT technologies that enable the company to offer multi-vendor IT solutions that are optimized for each of its customers' specific requirements. It also offers a wide portfolio of technology and other capital asset financing solutions to customers across commercial and government enterprises, designing programs.
Executives
Elaine D Marion officer: Chief Financial Officer 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
John E Callies director 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171
Faulders C Thomas Iii director 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Darren S Raiguel officer: Chief Operating Officer 25850 YELLOW BIRCH COURT, ALDIE VA 20105
Renee Bergeron director 1347 PANINI DRIVE, HENDERSON NV 89052
Ira A Hunt director 1051 DEAD RUN DRIVE, MCLEAN VA 22101
Maureen F Morrison director C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
Ben Xiang director 15 MACARTHUR PLACE, UNIT 1604, SANTA ANA CA 92707
Eric D Hovde 10 percent owner 122 W. WASHINGTON AVENUE, SUITE 350, MADISON WI 53703
Bruce M Bowen director, officer: Executive Vice President C/O EPLUS INC., 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Mark P Marron director, officer: Chief Executive Officer
Lawrence S Herman director C/O EPLUS INC, 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Phillip G Norton director, 10 percent owner, officer: President/CEO C/O EPLUS INC., 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Terrence Odonnell director 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Steven J Mencarini officer: SVP/CFO C/O EPLUS INC., 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413