GURUFOCUS.COM » STOCK LIST » Technology » Software » Varonis Systems Inc (NAS:VRNS) » Definitions » Degree of Operating Leverage

VRNS (Varonis Systems) Degree of Operating Leverage : -1.16 (As of Mar. 2025)


View and export this data going back to 2014. Start your Free Trial

What is Varonis Systems Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Varonis Systems's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VRNS's Degree of Operating Leverage is ranked better than
71.74% of 2665 companies
in the Software industry
Industry Median: 0.79 vs VRNS: -1.16

Varonis Systems Degree of Operating Leverage Historical Data

The historical data trend for Varonis Systems'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.

Varonis Systems Degree of Operating Leverage Chart

Varonis Systems 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 0.65 0.85 - -4.12 -0.61

Varonis Systems 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 -3.22 -3.99 -2.79 -0.61 -1.16

Competitive Comparison of Varonis Systems's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Varonis Systems'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.


Varonis Systems's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Varonis Systems's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Varonis Systems Degree of Operating Leverage Calculation

Varonis Systems'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
=( -74.569 (Mar. 2025) / -88.238 (Mar. 2024) - 1 )/( 573.351 (Mar. 2025) / 505.847 (Mar. 2024) - 1 )
=-0.1549/0.1334
=-1.16***

* 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.


Varonis Systems  (NAS:VRNS) 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.


Varonis Systems Degree of Operating Leverage Related Terms

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


Varonis Systems Business Description

Industry
Traded in Other Exchanges
Address
1250 Broadway, 28th Floor, New York, NY, USA, 10001
Varonis Systems is a cybersecurity vendor focused on data privacy and security. The firm is currently undergoing a cloud transition as it weans its on-premises customers over to its cloud products that are delivered as software-as-a-service. The New York-based firm was founded in 2005 and went public in 2014.
Executives
Guy Melamed officer: Chief Financial Officer 1250 BROADWAY, 29TH FLOOR, NEW YORK NY 10001
James O'boyle officer: SVP of Worldwide Sales C/O VARONIS SYSTEMS, INC., 1250 BROADWAY, 31ST FLOOR, NEW YORK NY 10001
Yakov Faitelson director, officer: CEO, President, Chairman C/O VARONIS SYSTEMS, INC., 1250 BROADWAY, 31ST FLOOR, NEW YORK NY 10001
Gili Iohan officer: Chief Financial Officer C/O VARONIS SYSTEMS, INC., 1250 BROADWAY, 31ST FLOOR, NEW YORK NY 10001
Avrohom J. Kess director 385 WASHINGTON STREET, ST. PAUL MN 55102
Ofer Segev director NESS TOWER, ATIDIM HIGH-TECH INDUSTRIAL, PARK, BUILDING 4, TEL AVIV L3 61580
David Bass officer: EVP Engineering & CTO 1250 BROADWAY 29TH FLOOR, NEW YORK NY 10001
Dov Gottlieb officer: VP and General Counsel 1250 BROADWAY, 29TH FLOOR, NEW YORK NY 10001
Van Den Bosch Fred director 350 ELLIS STREET, MOUNTAIN VIEW CA 94043
Carlos Aued director 1250 BROADWAY, 29TH FLOOR, NEW YORK NY 10001
Gilad Raz officer: CIO & VP of Technical Services 1250 BROADWAY, 29TH FLOOR, NEW YORK NY 10001
Kevin E Comolli director, 10 percent owner C/O ACCEL, 500 UNIVERSITY AVE, PALO ALTO CA 94301
Thomas F Mendoza director 495 E. JAVA DRIVE, SUNNYVALE CA 94089
Rachel Prishkolnik director 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335
Rona Segev-gal director C/O PITANGO VENTURE CAPITAL FUND IV L.P., 540 COWPER ST., SUITE 200, PALO ALTO CA 94301