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Vecima Networks (TSX:VCM) Degree of Operating Leverage : -6.04 (As of Mar. 2025)


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What is Vecima Networks Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vecima Networks's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -6.04. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:VCM's Degree of Operating Leverage is ranked better than
84.05% of 2414 companies
in the Hardware industry
Industry Median: 1 vs TSX:VCM: -6.04

Vecima Networks Degree of Operating Leverage Historical Data

The historical data trend for Vecima Networks'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.

Vecima Networks Degree of Operating Leverage Chart

Vecima Networks 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 -14.58 -6.62 -6.84 3.48 5.83

Vecima Networks 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 9.74 5.83 2.60 -1.61 -6.04

Competitive Comparison of Vecima Networks's Degree of Operating Leverage

For the Communication Equipment subindustry, Vecima Networks'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.


Vecima Networks's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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Vecima Networks Degree of Operating Leverage Calculation

Vecima Networks'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
=( 10.874 (Mar. 2025) / 24.229 (Mar. 2024) - 1 )/( 304.583 (Mar. 2025) / 279.093 (Mar. 2024) - 1 )
=-0.5512/0.0913
=-6.04***

* 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.


Vecima Networks  (TSX:VCM) 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.


Vecima Networks Degree of Operating Leverage Related Terms

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Vecima Networks Business Description

Industry
Traded in Other Exchanges
Address
771 Vanalman Avenue, Victoria, BC, CAN, V8Z 3B8
Vecima Networks Inc is engaged in Video and Broadband Solutions business designs, manufactures and sells products for the cable industry. The Company's Content Delivery and Storage business includes solutions and software for industries and customers that focus on storing, protecting, transforming, and delivering high-value media assets. The Company's Telematics business provides fleet managers key information and analytics require to optimally manage business.
Executives
Sumit Kumar Deemed Insider - 6 Months before becoming Insider, Director, Director or Senior Officer of 10% Security Holder, Senior Officer
Surinder Ghai Kumar 10% Security Holder, Director
Saket Kumar Deemed Insider - 6 Months before becoming Insider, Director or Senior Officer of 10% Security Holder, Senior Officer
684739 B.c. Ltd. 10% Security Holder
David Whitborne Rowat Director
Richard Dean Rockwell Senior Officer
Scott Blair Edmonds Director
Clay Mccreery Senior Officer
Danial Faizullabhoy Director
Ryan Nicometo Senior Officer
Peter Torn Senior Officer
Derek Jason Elder Director
Dwayne Albert Vinck Senior Officer
Nico Civelli Director
Yisrael Dov Meyer Senior Officer

Vecima Networks Headlines

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