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VSTTF (Vast Renewables) Degree of Operating Leverage : 0.98 (As of Dec. 2024)


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What is Vast Renewables Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vast Renewables's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.98. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VSTTF's Degree of Operating Leverage is ranked better than
50% of 996 companies
in the Semiconductors industry
Industry Median: 0.98 vs VSTTF: 0.98

Vast Renewables Degree of Operating Leverage Historical Data

The historical data trend for Vast Renewables'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.

Vast Renewables Degree of Operating Leverage Chart

Vast Renewables Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
- - - 2.77 77.11

Vast Renewables Semi-Annual Data
Jun20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only 1.06 2.77 141.49 77.11 0.98

Competitive Comparison of Vast Renewables's Degree of Operating Leverage

For the Solar subindustry, Vast Renewables'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.


Vast Renewables's Degree of Operating Leverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Vast Renewables's Degree of Operating Leverage distribution charts can be found below:

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


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Vast Renewables Degree of Operating Leverage Calculation

Vast Renewables's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -16.639 (Dec. 2024) / -290.142 (Dec. 2023) - 1 )/( 0.014 (Dec. 2024) / 0.388 (Dec. 2023) - 1 )
=-0.9427/-0.9639
=0.98***

* 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.


Vast Renewables  (OTCPK:VSTTF) 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.


Vast Renewables Degree of Operating Leverage Related Terms

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Vast Renewables Business Description

Traded in Other Exchanges
N/A
Address
124 Walker Street, Suite 7.02, North Sydney, NSW, AUS, 2060
Vast Renewables Ltd is a clean, renewable energy company specializing in the design and manufacturing of concentrated solar thermal power (CSP) systems to generate carbon-free, utility-scale electricity, industrial heat, and green fuels. The Company's differentiated modular CSP system, utilizing proprietary sodium loop heat transfer technology, provides customers with a solution to the enduring challenge of intermittent renewable energy through 24/7 dispatchable power and heat.