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Canadian Solar (STU:L5A) Degree of Operating Leverage : 6.17 (As of Mar. 2025)


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What is Canadian Solar Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Canadian Solar's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:L5A's Degree of Operating Leverage is ranked worse than
82.31% of 995 companies
in the Semiconductors industry
Industry Median: 0.99 vs STU:L5A: 6.17

Canadian Solar Degree of Operating Leverage Historical Data

The historical data trend for Canadian Solar'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.

Canadian Solar Degree of Operating Leverage Chart

Canadian Solar 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 -2.43 -0.09 2.87 10.99 4.20

Canadian Solar 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 2.25 3.45 3.27 4.20 6.17

Competitive Comparison of Canadian Solar's Degree of Operating Leverage

For the Solar subindustry, Canadian Solar'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.


Canadian Solar's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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Canadian Solar Degree of Operating Leverage Calculation

Canadian Solar'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
=( -77.243 (Mar. 2025) / 419.632 (Mar. 2024) - 1 )/( 5437.349 (Mar. 2025) / 6695.512 (Mar. 2024) - 1 )
=-1.1841/-0.1879
=6.30***

* 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.


Canadian Solar  (STU:L5A) 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.


Canadian Solar Degree of Operating Leverage Related Terms

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


Canadian Solar Business Description

Traded in Other Exchanges
Address
4273 King Street East, Suite 102, Kitchener, ON, CAN, N2P 2E9
Canadian Solar Inc is a Canadian solar technology and renewable energy company. It is a manufacturer of solar photovoltaic modules, a provider of battery energy storage solutions, and a developer of utility-scale solar power and battery energy storage projects.. It operates through two business segments CSI Solar and Recurrent Energy segment. The CSI Solar segment focused on solar modules and battery energy storage manufacturing and products. Its Recurrent segment focused on utility-scale solar power and battery energy storage project development and operation. Key revenue is generated from CSI Solar segment.

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