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SATS (EchoStar) Degree of Operating Leverage : 20.66 (As of Mar. 2025)


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What is EchoStar Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. EchoStar's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 20.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SATS's Degree of Operating Leverage is ranked worse than
86.65% of 367 companies
in the Telecommunication Services industry
Industry Median: 1.4 vs SATS: 20.66

EchoStar Degree of Operating Leverage Historical Data

The historical data trend for EchoStar'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.

EchoStar Degree of Operating Leverage Chart

EchoStar 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 -247.07 2.93 0.22 17.72 17.45

EchoStar 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 6.17 4.38 3.66 17.45 20.66

Competitive Comparison of EchoStar's Degree of Operating Leverage

For the Telecom Services subindustry, EchoStar'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.


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

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

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


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EchoStar Degree of Operating Leverage Calculation

EchoStar'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
=( 435.731 (Mar. 2025) / -2238.982 (Mar. 2024) - 1 )/( 15680.431 (Mar. 2025) / 16642.775 (Mar. 2024) - 1 )
=-1.1946/-0.0578
=20.66***

* 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.


EchoStar  (NAS:SATS) 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.


EchoStar Degree of Operating Leverage Related Terms

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


EchoStar Business Description

Traded in Other Exchanges
Address
9601 South Meridian Boulevard, Englewood, CO, USA, 80112
Satellite television provides the bulk of EchoStar's revenue. The firm serves about 6 million US satellite customers, about 10% of the traditional television market. It launched an internet-based television offering under the Sling brand in 2015 and serves about 2 million customers on this platform. The firm's focus is now on the wireless market. EchoStar has amassed an extensive portfolio of spectrum licenses and is building a nationwide wireless network. It acquired Sprint's prepaid business and serves about 7 million customers, primarily under the Boost brand. EchoStar's legacy businesses provide satellite telecom services and equipment to businesses and consumers, including about 850,000 internet customers.
Executives
Dean Manson officer: Acting General Counsel HUGHES COMMUNICATIONS, INC., 11717 EXPLORATION LANE, GERMANTOWN MD 20876
Charles W Ergen director, officer: Chairman and CEO 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
C Mike Schroeder director 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Lisa W. Hershman director PO BOX 1602, SOUTH BEND IN 46634
William David Wade director 11717 EXPLORATION LANE, GERMANTOWN MD 20876
Jeffrey R Tarr director DIGITALGLOBE, INC., 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
R Stanton Dodge director ECHOSTAR CORPORATION, 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Ergen Two-year June 2023 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Ergen Two-year June 2022 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Ergen Two-year June 2021 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Pradman P Kaul director 11717 EXPLORATION LANE, GERMANTOWN MD 20876
Hamid Akhavan officer: CEO and President 1226 EARNESTINE ST., MCLEAN VA 22101
Ergen Two-year March 2022 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Veronika Takacs officer: Principal Accounting Officer 11717 EXPLORATION LANE, GERMANTOWN MD 20876
Ramesh Ramaswamy officer: Executive VP - International 11717 EXPLORATION LANE, GERMANTOWN MD 20876