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VIRC (Virco Manufacturing) Degree of Operating Leverage : 2.66 (As of Apr. 2025)


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What is Virco Manufacturing Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Virco Manufacturing's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 2.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VIRC's Degree of Operating Leverage is ranked worse than
64.69% of 422 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.215 vs VIRC: 2.66

Virco Manufacturing Degree of Operating Leverage Historical Data

The historical data trend for Virco Manufacturing'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.

Virco Manufacturing Degree of Operating Leverage Chart

Virco Manufacturing Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.13 5.49 -16.95 13.27 8.72

Virco Manufacturing Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 8.20 5.78 2.54 8.72 2.66

Competitive Comparison of Virco Manufacturing's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Virco Manufacturing'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.


Virco Manufacturing's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Virco Manufacturing's Degree of Operating Leverage distribution charts can be found below:

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


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Virco Manufacturing Degree of Operating Leverage Calculation

Virco Manufacturing's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 26.933 (Apr. 2025) / 36.483 (Apr. 2024) - 1 )/( 253.259 (Apr. 2025) / 280.909 (Apr. 2024) - 1 )
=-0.2618/-0.0984
=2.66***

* 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.


Virco Manufacturing  (NAS:VIRC) 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.


Virco Manufacturing Degree of Operating Leverage Related Terms

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


Virco Manufacturing Business Description

Traded in Other Exchanges
N/A
Address
2027 Harpers Way, Torrance, CA, USA, 90501
Virco Manufacturing Corp is engaged in designing, production and distributing quality furniture for the commercial and education markets. The company manufactures an assortment of products, including mobile tables, mobile storage equipment, desks, computer furniture, chairs, and activity tables, folding chairs, and folding tables. Its primary furniture lines are constructed of tubular metal legs and frames, combined with wood and plastic tops, plastic seats and backs, upholstered seats and backs, and upholstered rigid polyethylene and polypropylene shells.
Executives
Patricia Levine Quinones officer: Vice President 6008 E. CALLE CEDRO, ANAHEIM CA 92807
Bradley C Richardson director
Craig L Levra director C/O SPORT CHALET INC, ONE SPORT CHALET DRIVE, LA CANADA CA 91011
Agnieszka Winkler director C/O INTER-TEL, INCORPORATED, 1615 SOUTH 52ND STREET, TEMPE AZ 85281
Kathleen D Young director C/O VIRCO MFG. CORPORATION, 2027 HARPERS WAY, TORRANCE CA 90501
Douglas A Virtue director, officer: Executive Vice President
Robert A Virtue director, officer: President & CEO & Chairman
Donald R Rudkin director C/O VIRCO MFG. CORPORATION, 2027 HARPERS WAY, TORRANCE CA 90501
Alexander L Cappello director C/O THE CHEESECAKE FACTORY INC, 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Bassey Yau officer: Assistant Secretary / Treasure 5502 MARICOPA ST., TORRANCE CA 90501
Robert M Hupe officer: VP General Counsel C/O VIRCO MFG. CORPORATION, 2027 HARPERS WAY, TORRANCE CA 90501
Jerry Scott Bell officer: COO C/O VIRCO MFG. CORPORATION, TORRANCE CA 90501
Robert James Devers officer: Sr. VP, Information Technology C/O VIRCO MFG. CORPORATION, 2027 HARPERS WAY, TORRANCE CA 90501
Johnson James David Ii officer: Sr. Vice President Marketing C/O VIRCO MFG. CORPORATION, 2027 HARPERS WAY, TORRANCE CA 90501
Michael Anthony Digregorio director C/O IRONCLAD PERFORMANCE WEAR CORP., 2201 PARK PLACE, SUITE 101, EL SEGUNDO CA 90245