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Vitru (VTRU) Degree of Operating Leverage : 0.00 (As of Dec. 2023)


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What is Vitru Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vitru's Degree of Operating Leverage for the quarter that ended in Dec. 2023 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VTRU's Degree of Operating Leverage is not ranked *
in the Education industry.
Industry Median: 0.79
* Ranked among companies with meaningful Degree of Operating Leverage only.

Vitru Degree of Operating Leverage Historical Data

The historical data trend for Vitru'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.

Vitru Degree of Operating Leverage Chart

Vitru Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial -18.66 44.22 1.56 0.97 1.64

Vitru Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.97 - - - 1.64

Competitive Comparison of Vitru's Degree of Operating Leverage

For the Education & Training Services subindustry, Vitru'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.


Vitru's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Vitru's Degree of Operating Leverage distribution charts can be found below:

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


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Vitru Degree of Operating Leverage Calculation

Vitru's Degree of Operating Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 88.67 (Dec. 2023) / 44.861 (Dec. 2022) - 1 )/( 400.532 (Dec. 2023) / 251.143 (Dec. 2022) - 1 )
=0.9765/0.5948
=1.64***

* 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.


Vitru  (NAS:VTRU) 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.


Vitru Degree of Operating Leverage Related Terms

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Vitru Business Description

Industry
Traded in Other Exchanges
N/A
Address
5500, Torre Jurere A, 2nd floor, Saco Grande, Rodovia Jose Carlos Daux, Florianopolis, SC, BRA, 88032-005
Vitru Ltd is a digital education provider in Brazil. It provides post-secondary distance learning programs. The company provides a complete pedagogical ecosystem focused on a hybrid digital education experience for undergraduates and continuing education. The programs are provided in multiple formats namely, videos, eBooks, podcasts, and html text, among others. The segments of the company are digital education undergraduate courses which generates key revenue for the firm, on-campus undergraduate, and continuing education courses.

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