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SCSC (ScanSource) Degree of Operating Leverage : 1.95 (As of Dec. 2024)


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What is ScanSource Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ScanSource's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SCSC's Degree of Operating Leverage is ranked worse than
60.54% of 2420 companies
in the Hardware industry
Industry Median: 1.09 vs SCSC: 1.95

ScanSource Degree of Operating Leverage Historical Data

The historical data trend for ScanSource'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.

ScanSource Degree of Operating Leverage Chart

ScanSource Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.98 -61.58 7.82 1.80 1.46

ScanSource Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 1.01 1.86 1.46 0.88 1.95

Competitive Comparison of ScanSource's Degree of Operating Leverage

For the Electronics & Computer Distribution subindustry, ScanSource'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.


ScanSource's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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ScanSource Degree of Operating Leverage Calculation

ScanSource's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 91.484 (Dec. 2024) / 132.79 (Dec. 2023) - 1 )/( 3021.789 (Dec. 2024) / 3593.764 (Dec. 2023) - 1 )
=-0.3111/-0.1592
=1.95***

* 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.


ScanSource  (NAS:SCSC) 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.


ScanSource Degree of Operating Leverage Related Terms

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


ScanSource Business Description

Industry
Traded in Other Exchanges
Address
6 Logue Court, Greenville, SC, USA, 29615
ScanSource Inc provides value-added services for technology manufacturers and sells to resellers in specialty technology markets. The firm's operations are organized in two segments: Specialty Technology Solutions and Modern Communications and Cloud. It generates maximum revenue from the Specialty Technology Solutions segment. The Specialty Technology Solutions segment includes the company's business in mobility and barcode, POS, payments, security and networking technologies. Geographically, it derives a majority of revenue from the United States.
Executives
Stephen Jones officer: Sr. EVP & CFO 6 LOGUE COURT, GREENVILLE SC 29615
Michael L Baur officer: President and CEO 6 LOGUE COURT, GREENVILLE SC 29615
Brandy Ford officer: SVP & Chief Accounting Officer 6 LOGUE COURT, GREENVILLE SC 29615
Rachel Hayden officer: Senior Executive VP & CIO 6 LOGUE COURT, GREENVILLE SC 29615
Shana C Smith officer: Sr. EVP & Chief Legal Officer 1875 EXPLORER ST SUITE 800, RESTON VA 20190
Charles Alexander Mathis officer: Vice-President & CFO 627 ISLAND PARK DRIVE, DANIEL ISLAND SC 29492
Peter C Browning director GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
John Charles Eldh officer: Sr. EVP & Chief Revenue Off. 6 LOGUE COURT, GREENVILLE SC 29615
Vernon J Nagel director 1330 W. FULTON STREET, SUITE 350, CHICAGO IL 60607
Charles R Whitchurch director 143 FULLER LANE, WINNDKER IL 60093
Michael J Grainger director C/O INGRAM MICRO INC WORLD WIDE L, 1600 E ST ANDREW PLACE, SANTA ANA CA 92705
Emory Frank Edward Jr. director 2809 SHARON VIEW ROAD, CHARLOTTE NC 28210
Jeffrey R Rodek director 4151 GULF SHORE BLVD N, PH2, NAPLES FL 34103
Matthew Dean officer: VP and General Counsel 101 LEDGESTONE WAY, GREER SC 29651
Gerald Lyons officer: SVP & Principal Acctg Officer 6 LOGUE CT., GREENVILLE SC 29615