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ST (Sensata Technologies Holding) Degree of Operating Leverage : 4.30 (As of Mar. 2025)


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What is Sensata Technologies Holding Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sensata Technologies Holding's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ST's Degree of Operating Leverage is ranked worse than
77.21% of 2413 companies
in the Hardware industry
Industry Median: 1 vs ST: 4.30

Sensata Technologies Holding Degree of Operating Leverage Historical Data

The historical data trend for Sensata Technologies Holding'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.

Sensata Technologies Holding Degree of Operating Leverage Chart

Sensata Technologies Holding 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 3.83 3.02 -0.13 -107.51 9.37

Sensata Technologies Holding 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 -272.50 50.52 84.60 9.37 4.30

Competitive Comparison of Sensata Technologies Holding's Degree of Operating Leverage

For the Scientific & Technical Instruments subindustry, Sensata Technologies Holding'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.


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

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

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


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Sensata Technologies Holding Degree of Operating Leverage Calculation

Sensata Technologies Holding'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
=( 135.584 (Mar. 2025) / 178.078 (Mar. 2024) - 1 )/( 3837.31 (Mar. 2025) / 4062.617 (Mar. 2024) - 1 )
=-0.2386/-0.0555
=4.30***

* 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.


Sensata Technologies Holding  (NYSE:ST) 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.


Sensata Technologies Holding Degree of Operating Leverage Related Terms

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


Sensata Technologies Holding Business Description

Traded in Other Exchanges
Address
529 Pleasant Street, Attleboro, MA, USA, 02703
Sensata Technologies is a global supplier of sensors for transportation and industrial applications. Sensata sells a bevy of pressure, temperature, force, and position sensors into the automotive, heavy vehicle, industrial, heating, ventilation, and cooling, and aerospace markets. The majority of the firm's revenue comes from the automotive market, where it focuses on bumper-in applications.
Executives
Andrew C Teich director 3 HANSON DRIVE, MOULTONBOROUGH NH 03254
David K Stott officer: VP, General Counsel 529 PLEASANT STREET, ATTLEBORO MA 02703
Martha N. Sullivan officer: Executive VP and COO 529 PLEASANT STREET, MS B-7, ATTLEBORO MA 02703
Brian K Roberts officer: EVP & Chief Financial Officer DIGITAS INC.,, 800 BOYLSTON STREET, BOSTON MA 02199
Jugal K. Vijayvargiya director C/O DELPHI AUTOMOTIVE, 5725 DELPHI DRIVE, TROY MI 48098
Stephen M Zide director BAIN CAPITAL PARTNERS, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
Brian John Wilkie officer: SVP - Sensing Solutions 529 PLEASANT STREET, ATTLEBORO MA 02703
Jennifer Lynn Slater officer: SVP - Performance Sensing Auto 5757 N GREEN BAY AVENUE FLORIST, TOWER MILWAUKEE WI 53209
Jeffrey J Cote officer: Executive VP and CFO C/O SENSATA TECHNOLOGIES, INC., 529 PLEASANT STREET, ATTLEBORO MA 02703
Maria G Freve officer: VP, Chief Accounting Officer 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
Paul S Vasington officer: Chief Financial Officer 529 PLEASANT STREET, ATTLEBORO MA 02703
Shannon M. Votava officer: SVP, Chief Legal Officer 2111 NORTH MOLTER ROAD, LIBERTY LAKE WA 99019
Vineet A Nargolwala officer: EVP, Sensing Solutions 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
Yann L Etienvre officer: EVP, Chief SC Officer 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
George Verras officer: SVP & Chief Technology Officer 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703