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VMI (Valmont Industries) Degree of Operating Leverage : -118.96 (As of Mar. 2025)


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What is Valmont Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Valmont Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -118.96. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VMI's Degree of Operating Leverage is ranked better than
98.72% of 548 companies
in the Conglomerates industry
Industry Median: 1.09 vs VMI: -118.96

Valmont Industries Degree of Operating Leverage Historical Data

The historical data trend for Valmont Industries'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.

Valmont Industries Degree of Operating Leverage Chart

Valmont Industries 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 -0.55 1.41 1.49 7.31 -33.48

Valmont Industries 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 3.71 4.82 -8.85 -33.48 -118.96

Competitive Comparison of Valmont Industries's Degree of Operating Leverage

For the Conglomerates subindustry, Valmont Industries'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.


Valmont Industries's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Valmont Industries's Degree of Operating Leverage distribution charts can be found below:

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


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Valmont Industries Degree of Operating Leverage Calculation

Valmont Industries'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
=( 520.882 (Mar. 2025) / 309.804 (Mar. 2024) - 1 )/( 4066.52 (Mar. 2025) / 4089.945 (Mar. 2024) - 1 )
=0.6813/-0.0057
=-118.96***

* 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.


Valmont Industries  (NYSE:VMI) 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.


Valmont Industries Degree of Operating Leverage Related Terms

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


Valmont Industries Business Description

Traded in Other Exchanges
Address
15000 Valmont Plaza, Omaha, NE, USA, 68154
Valmont began in 1946 when founder, Robert B. Daugherty, combined his $5,000 savings with a wholehearted belief that business could and should be done better. From those modest beginnings, the company grew into a global leader, designing and manufacturing highly engineered products and services that support infrastructure development and agricultural productivity. Two primary business segments comprise Valmont: Agriculture and Infrastructure. Valmont have 85 manufacturing facilities in 22 countries, and do business in more than 100 countries across six continents.
Executives
Theodor Werner Freye director VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68154
Diane M Larkin officer: EVP, Global Operations VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68154
Mogens C Bay director, officer: Chairman and CEO 15000 VALMONT PLAZA, OMAHA NE 68154
Daas Kaj Den director EIFELLAAN #3, 5691 GW, SON EN BREUGEL P7 00000
John Timothy Donahue officer: EVP, Corp/Business Development VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68135
Timothy Francis officer: VP Corporate Controller VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154-5215
R Andrew Massey officer: VP, Legal and Compliance VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68154
Thomas Mitchell Parnell officer: SVP, Human Resources VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154
Ellen S Dasher officer: VP, Global Taxation VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154
Aaron M Schapper officer: EVP Infrastructure VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68154
Stephen G Kaniewski officer: President & COO 15000 VALMONT PLAZA, 15000 VALMONT PLAZA, OMAHA NE 68154
Gene Padgett officer: CAO VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154
Renee L Campbell officer: SVP, Investor Relations, Treas VALMONT INDUSTRIES, 15000 VALMONT PLAZA, OMAHA NE 68154
James B. Milliken director ONE VALMONT PLAZA, 13815 FIRST NATIONAL BANK PARKWAY, OMAHA NE 68135
Randt Clark T. Jr. director ONE VALMONT PLAZA, 13815 FIRST NATIONAL BANK PARKWAY, OMAHA NE 68154