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VC (Visteon) Degree of Operating Leverage : -15.63 (As of Mar. 2025)


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What is Visteon Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Visteon's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -15.63. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VC's Degree of Operating Leverage is ranked better than
90.24% of 1281 companies
in the Vehicles & Parts industry
Industry Median: 1.1 vs VC: -15.63

Visteon Degree of Operating Leverage Historical Data

The historical data trend for Visteon'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.

Visteon Degree of Operating Leverage Chart

Visteon 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 7.67 -268.96 3.04 8.53 -6.40

Visteon 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 88.42 -27.07 -7.75 -6.40 -15.63

Competitive Comparison of Visteon's Degree of Operating Leverage

For the Auto Parts subindustry, Visteon'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.


Visteon's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Visteon's Degree of Operating Leverage distribution charts can be found below:

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


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Visteon Degree of Operating Leverage Calculation

Visteon'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
=( 344 (Mar. 2025) / 284 (Mar. 2024) - 1 )/( 3867 (Mar. 2025) / 3920 (Mar. 2024) - 1 )
=0.2113/-0.0135
=-15.63***

* 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.


Visteon  (NAS:VC) 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.


Visteon Degree of Operating Leverage Related Terms

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


Visteon Business Description

Traded in Other Exchanges
Address
One Village Center Drive, Van Buren Township, MI, USA, 48111
Visteon Corp is an automotive supplier. It manufactures electronics products for original equipment vehicle manufacturers including Ford, Nissan, Renault, Mazda, BMW, General Motors, and Honda, etc. The company offers information displays, instrument clusters, head-up displays, infotainment systems, telematics solutions, and Smartcore. The Company's reportable segment is Electronics. The Electronics segment provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated driver assistance systems, displays, Android-based infotainment systems, and battery management systems. Geographically, it operates in North America, Europe, China, Asia-Pacific, and South America and Others.
Executives
Sachin Lawande director, officer: CEO & President HARMAN INTERNATIONAL, 400 ATLANTIC STREET, SUITE 1500, STAMFORD CT 06901
Jeffrey David Jones director VISTEON CORPORATION, ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111
Joao Paulo Ribeiro officer: Senior Vice President VISTEON CORPORATION, ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111
Qais M Sharif officer: Senior Vice President VISTEON CORPORATION, ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111
Brett D Pynnonen officer: V.P. & General Counsel 26555 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48033
Jerome Rouquet officer: Senior Vice President 26555 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48034
Robert R Vallance officer: Vice President VISTEON CORPORATION, ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111
Robert Manzo director PARK 80 W PLZ 2, SADDLE BROOK NJ 07663
David L Treadwell director 222 S 15TH STREET, SUITE 600 N, OMAHA NE 68102
Kristin Trecker officer: Senior Vice President & CHRO 10000 WEHRLE DRIVE, CLARENCE NY 14031
Bunsei Kure director VISTEON CORPORATION, ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48167
Francis M Scricco director C/O AVAYA INC., 211 MOUNT AIRY ROAD, BASKING RIDGE NJ 07920
Matthew M Cole officer: Senior Vice President ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111
Abigail S Fleming officer: Vice President & CAO VISTEON CORPORATION, ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111
Sunil K Bilolikar officer: Senior Vice President ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111