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VRT (Vertiv Holdings Co) Degree of Operating Leverage : 4.65 (As of Mar. 2025)


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What is Vertiv Holdings Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vertiv Holdings Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.65. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VRT's Degree of Operating Leverage is ranked worse than
78.02% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs VRT: 4.65

Vertiv Holdings Co Degree of Operating Leverage Historical Data

The historical data trend for Vertiv Holdings Co'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.

Vertiv Holdings Co Degree of Operating Leverage Chart

Vertiv Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only - -24.13 1.61 6.17 1.69

Vertiv Holdings Co 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 3.38 4.18 3.18 1.69 4.65

Competitive Comparison of Vertiv Holdings Co's Degree of Operating Leverage

For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co'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.


Vertiv Holdings Co's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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


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Vertiv Holdings Co Degree of Operating Leverage Calculation

Vertiv Holdings Co'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
=( 1180.5 (Mar. 2025) / 605.3 (Mar. 2024) - 1 )/( 8408.7 (Mar. 2025) / 6981.2 (Mar. 2024) - 1 )
=0.9503/0.2045
=4.65***

* 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.


Vertiv Holdings Co  (NYSE:VRT) 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.


Vertiv Holdings Co Degree of Operating Leverage Related Terms

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


Vertiv Holdings Co Business Description

Traded in Other Exchanges
Address
505 N. Cleveland Avenue, Westerville, OH, USA, 43082
Vertiv has roots tracing back to 1946 when its founder, Ralph Liebert, developed an air-cooling system for mainframe data rooms. As computers started making their way into commercial applications in 1965, Liebert developed one of the first computer room air conditioning, or CRAC, units, enabling the precise control of temperature and humidity. The firm has slowly expanded its data center portfolio through internal product development and the acquisition of thermal and power management products like condensers, busways, and switches. Vertiv has global operations today; its products can be found in data centers in most regions throughout the world.
Executives
Karsten Winther officer: President, EMEA 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Anders Karlborg officer: EVP, Man., Logistics and Op Ex 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Stephen Liang officer: President of Asia Pacific C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Jan Van Dokkum director ONE FINANCIAL PLAZA, UNITED TECHNOLOGIES CORP, HATTFORD CT 06101
Doherty Philip O' officer: Managing Director, E+I 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Anand Sanghi officer: Pres. AU, NZ, SE Asia & India C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Steven Reinemund director 700 ANDERSON HILL RD, PURCHASE NY 10577
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202
Robin L Washington director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Roger Fradin director C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Yibin Edward Cui officer: President, North Asia 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Scott Cripps officer: Chief Accounting Officer C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Vpe Holdings, Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iii, Llc director C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Paul Ryan officer: Chief Procurement Officer 505 N. CLEVELAND AVE., WESTERVILLE OH 43082