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BCE (TSX:BCE) Degree of Operating Leverage : 63.70 (As of Sep. 2024)


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What is BCE Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. BCE's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 63.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:BCE's Degree of Operating Leverage is ranked worse than
96.45% of 366 companies
in the Telecommunication Services industry
Industry Median: 1.115 vs TSX:BCE: 63.70

BCE Degree of Operating Leverage Historical Data

The historical data trend for BCE'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.

BCE Degree of Operating Leverage Chart

BCE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.52 5.10 5.74 0.15 -2.23

BCE Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -1.64 -2.23 -9.25 42.97 63.70

Competitive Comparison of BCE's Degree of Operating Leverage

For the Telecom Services subindustry, BCE'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.


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

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

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



BCE Degree of Operating Leverage Calculation

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

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2633 (Sep. 2024) / 4901 (Sep. 2023) - 1 )/( 24460 (Sep. 2024) / 24639 (Sep. 2023) - 1 )
=-0.4628/-0.0073
=63.70***

* 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.


BCE  (TSX:BCE) 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.


BCE Degree of Operating Leverage Related Terms

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


BCE Business Description

Address
1 Carrefour Alexander Graham Bell, Tour A-7, Verdun, QC, CAN, H3E 3B3
BCE provides wireless, broadband, television, and landline phone services in Canada. It is one of the big three national wireless carriers, with over 10 million customers constituting about 30% of the market. It is also the incumbent local exchange carrier, or ILEC—the legacy telephone provider—throughout much of the eastern half of Canada, including in the most populous Canadian provinces: Ontario and Quebec. Additionally, BCE has a media segment, which holds television, radio, and digital media assets. BCE licenses the Canadian rights to movie channels including HBO, Showtime, and Starz.
Executives
Calin Rovinescu Director
Mirko Bibic Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Louis Vachon Director
Robert Simmonds Director
Louis P. Pagnutti Director
John Watson Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Claire Gillies Senior Officer
Glen Leblanc Senior Officer
Blaik Kirby Senior Officer
Karine Moses Senior Officer
Jennifer Anne Tory Director
Sheila A. Murray Director
Stephen Guy Howe Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Robert Malcolmson Senior Officer
Thomas (tom) Little Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)