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VLTO (Veralto) Degree of Operating Leverage : 2.39 (As of Mar. 2025)


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What is Veralto Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Veralto's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VLTO's Degree of Operating Leverage is ranked worse than
66.33% of 2931 companies
in the Industrial Products industry
Industry Median: 1.08 vs VLTO: 2.39

Veralto Degree of Operating Leverage Historical Data

The historical data trend for Veralto'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.

Veralto Degree of Operating Leverage Chart

Veralto Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 1.25 1.74 0.38 1.89

Veralto Quarterly Data
Dec21 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 0.75 -0.33 1.19 1.89 2.39

Competitive Comparison of Veralto's Degree of Operating Leverage

For the Pollution & Treatment Controls subindustry, Veralto'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.


Veralto's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Veralto's Degree of Operating Leverage distribution charts can be found below:

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


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Veralto Degree of Operating Leverage Calculation

Veralto'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
=( 1237 (Mar. 2025) / 1112 (Mar. 2024) - 1 )/( 5279 (Mar. 2025) / 5042 (Mar. 2024) - 1 )
=0.1124/0.047
=2.39***

* 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.


Veralto  (NYSE:VLTO) 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.


Veralto Degree of Operating Leverage Related Terms

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


Veralto Business Description

Traded in Other Exchanges
Address
225 Wyman Street, Suite 250, Waltham, MA, USA, 02451
Veralto Corp is a provider of essential technology solutions that safeguard many of the world's most vital resources. The company operates in two segments: Water Quality and Product Quality & Innovation. Through the WQ segment, it improves the quality and reliability of water through brands including Hach, Trojan Technologies, and ChemTreat. Through the PQI segment, the company promotes consumer trust in products and helps enable product innovation through brands including Videojet, Linx, Esko, X-Rite, and Pantone.
Executives
Surekha Trivedi officer: SVP, Strategy & Sustainability C/O VERALTO CORPORATION, 225 WYMAN STREET, SUITE 250, WALTHAM MA 02451
Jennifer Honeycutt director, officer: President and CEO 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Melissa Aquino officer: SVP, Water Quality 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Bernard M Skeete officer: VP, Chief Accounting Officer C/O TRINSEO S.A., 1000 CHESTERBROOK BLVD., SUITE 300, BERWYN PA 19312
Mattias Bystrom officer: SVP-Prod. Quality & Innovation C/O VERALTO CORPORATION, 225 WYMAN STREET, SUITE 250, WALTHAM MA 02451
Heath A Mitts director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Sameer Ralhan officer: SVP, Chief Financial Officer C/O THE CHEMOURS COMPANY, 1007 MARKET STREET, WILMINGTON DE 19899
Lesley Beneteau officer: SVP, Human Resources C/O VERALTO CORPORATION, 225 WYMAN STREET, SUITE 250, WALTHAM MA 02451
Cindy L. Wallis-lage director C/O COMFORT SYSTEMS USA, INC., 675 BERING DRIVE, SUITE 400, HOUSTON TX 77057
Sylvia Ann Stein officer: SVP, General Counsel 1500 DEKOVEN AVE., RACINE WI 53403
Shyam Kambeyanda director 2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Thomas L Williams director 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Francoise Colpron director SEALED AIR CORPORATION, 2415 CASCADE POINTE BOUVELVARD, CHARLOTTE NC 28208
William King director 2200 PENNSYLVANIA AVENUE, NW, SUITE 800W, WASHINGTON DC 20037
Walter G Lohr director DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006