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VREX (Varex Imaging) Degree of Operating Leverage : -0.20 (As of Mar. 2025)


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What is Varex Imaging Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Varex Imaging's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VREX's Degree of Operating Leverage is ranked better than
62.58% of 799 companies
in the Medical Devices & Instruments industry
Industry Median: 0.59 vs VREX: -0.20

Varex Imaging Degree of Operating Leverage Historical Data

The historical data trend for Varex Imaging'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.

Varex Imaging Degree of Operating Leverage Chart

Varex Imaging Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.42 -22.10 4.04 -7.15 4.90

Varex Imaging 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 13.14 8.22 4.90 4.86 -0.20

Competitive Comparison of Varex Imaging's Degree of Operating Leverage

For the Medical Devices subindustry, Varex Imaging'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.


Varex Imaging's Degree of Operating Leverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Varex Imaging's Degree of Operating Leverage distribution charts can be found below:

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


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Varex Imaging Degree of Operating Leverage Calculation

Varex Imaging'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
=( 46.6 (Mar. 2025) / 46.3 (Mar. 2024) - 1 )/( 827.5 (Mar. 2025) / 855.8 (Mar. 2024) - 1 )
=0.0065/-0.0331
=-0.20***

* 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.


Varex Imaging  (NAS:VREX) 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.


Varex Imaging Degree of Operating Leverage Related Terms

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


Varex Imaging Business Description

Traded in Other Exchanges
Address
1678 S. Pioneer Road, Salt Lake City, UT, USA, 84104
Varex Imaging Corp designs and manufactures X-ray imaging components. It operates in two segments Medical and Industrial. The Medical segment, which is the key revenue driver, designs, manufactures, sells, and services X-ray imaging components, including X-ray tubes, digital detectors and accessories, generators, and heat exchangers among other products. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital flat panel detectors, high-voltage connectors, and coolers. Geographically, the company generates maximum revenue from Europe, Middle East, and Africa (EMEA) and the rest from the Americas and Asia Pacific region.
Executives
Sunny Sanyal director, officer: President and CEO 1678 S. PIONEER ROAD, SALT LAKE CITY UT 84104
Kimberley E. Honeysett officer: Vice President and Secretary 1678 S. PIONEER ROAD, SALT LAKE CITY UT 84104
Shubham Maheshwari officer: Chief Financial Officer C/O VEECO INSTRUMENTS INC., 1 TERMINAL DRIVE, PLAINVIEW NY 11803
Jay K. Kunkel director 21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Ruediger Naumann-etienne director
Kathleen Bardwell director 9 BLACKBERRY DRIVE, HUDSON OH 44236
Kevin Bruce Yankton officer: Controller & CAO 1678 S. PIONEER ROAD, SALT LAKE CITY UT 84104
Andrew Hartmann officer: SVP Sales & Marketing, Medical 1678 S. PIONEER ROAD, SALT LAKE CITY UT 84104
Timothy E Guertin director C/O VARIAN MEDICAL SYSTEMS, INC, 3100 HANSEN WAY M/S E-327, PALO ALTO CA 94304
Brian W Giambattista officer: SVP and GM, X-ray Detectors 1678 SOUTH PIONEER ROAD, SALT LAKE CITY UT 84104
Erich R Reinhardt director VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Mark S. Jonaitis officer: SVP and GM, X-Ray Sources 1678 S. PIONEER ROAD, SALT LAKE CITY UT 84104
Clarence R Verhoef officer: SVP & Chief Financial Officer VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 95035
Rosebrough Walter M Jr director 5960 HEISLEY ROAD, MENTOR OH 44060
Carl E. Lacasce officer: SVP, Sales & Marketing 1678 S. PIONEER ROAD, SALT LAKE CITY UT 84104