GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Virtu Financial Inc (NAS:VIRT) » Definitions » Degree of Operating Leverage

VIRT (Virtu Financial) Degree of Operating Leverage : 1.31 (As of Mar. 2025)


View and export this data going back to 2015. Start your Free Trial

What is Virtu Financial Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Virtu Financial's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.31. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VIRT's Degree of Operating Leverage is ranked worse than
61.49% of 631 companies
in the Capital Markets industry
Industry Median: 0.75 vs VIRT: 1.31

Virtu Financial Degree of Operating Leverage Historical Data

The historical data trend for Virtu Financial'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.

Virtu Financial Degree of Operating Leverage Chart

Virtu Financial 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 7.73 1.80 1.74 -1.69 1.47

Virtu Financial 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 10.89 2.99 1.85 1.47 1.31

Competitive Comparison of Virtu Financial's Degree of Operating Leverage

For the Capital Markets subindustry, Virtu Financial'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.


Virtu Financial's Degree of Operating Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Virtu Financial's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Virtu Financial Degree of Operating Leverage Calculation

Virtu Financial'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
=( 1367.824 (Mar. 2025) / 957.318 (Mar. 2024) - 1 )/( 3071.979 (Mar. 2025) / 2315.834 (Mar. 2024) - 1 )
=0.4288/0.3265
=1.31***

* 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.


Virtu Financial  (NAS:VIRT) 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.


Virtu Financial Degree of Operating Leverage Related Terms

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


Virtu Financial Business Description

Traded in Other Exchanges
Address
1633 Broadway, New York, NY, USA, 10019
Virtu Financial Inc is a financial firm that leverages cutting edge technology to deliver liquidity to the global markets and innovative, transparent trading solutions to its clients. The company's operating segment includes Market Making; and Execution Services. The non-operating segment of the company includes the Corporate segment. The company generates maximum revenue from the market-making segment. The Market Making segment principally consists of market-making in the cash, futures, and options markets across equities, options, fixed income, currencies, and commodities. Geographically, it derives a majority of its revenue from the United States and also has a presence in Ireland and Other Countries.
Executives
Stephen Cavoli officer: EVP 300 VESEY STREET, NEW YORK NY 10282
Brett Fairclough officer: COO ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006
Virginia Gambale director C/O JETBLUE AIRWAYS CORP., 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Douglas A Cifu director, officer: CEO ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006
Joseph Molluso officer: EX VP & CFO 645 MADISON AVENUE, NEW YORK NY 10022-1010
Joanne Minieri director 100 VENTERANS MEMORIAL HIGHWAY, 11TH FL, HAUPPAUGE NY 11788
Gic Private Ltd 10 percent owner 168 ROBINSON ROAD, #37-01 CAPITAL TOWER, SINGAPORE U0 068912
Coral Blue Investment Pte. Ltd. 10 percent owner 168 ROBINSON ROAD 37-01 CAPITAL TOWER, SINGAPORE U0 068912
North Island Ventures, Llc 10 percent owner 51 WEST 52ND STREET, 30TH FLOOR, NEW YORK NY 10019
Sean Galvin officer: CFO 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Public Sector Pension Investment Board 10 percent owner 1250 RENE-LEVESQUE BLVD WEST, SUITE 1400, MONTREAL A8 H3B 5E9
Temasek Holdings (private) Ltd 10 percent owner 60B ORCHARD ROAD #06-18 TOWER 2, THE ATRIUM@ORCHARD, SINGAPORE U0 238891
Joseph C. Grano director 1185 AVENUE OF THE AMERICAS, SUITE 1750, NEW YORK NY 10036
Alexander M. Ioffe officer: CFO ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006
Hyungtaek Kim officer: CAO ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006

Virtu Financial Headlines