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VTSI (VirTra) Degree of Operating Leverage : 2.50 (As of Mar. 2025)


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What is VirTra Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. VirTra's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.50. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VTSI's Degree of Operating Leverage is ranked worse than
70.92% of 2665 companies
in the Software industry
Industry Median: 0.79 vs VTSI: 2.50

VirTra Degree of Operating Leverage Historical Data

The historical data trend for VirTra'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.

VirTra Degree of Operating Leverage Chart

VirTra 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 182.61 0.67 4.95 8.10 2.59

VirTra 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 2.87 -1.38 2.65 2.59 2.50

Competitive Comparison of VirTra's Degree of Operating Leverage

For the Software - Application subindustry, VirTra'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.


VirTra's Degree of Operating Leverage Distribution in the Software Industry

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

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


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VirTra Degree of Operating Leverage Calculation

VirTra'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
=( 1.966 (Mar. 2025) / 7.563 (Mar. 2024) - 1 )/( 25.416 (Mar. 2025) / 36.111 (Mar. 2024) - 1 )
=-0.7401/-0.2962
=2.50***

* 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.


VirTra  (NAS:VTSI) 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.


VirTra Degree of Operating Leverage Related Terms

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


VirTra Business Description

Industry
Traded in Other Exchanges
Address
295 E. Corporate Place, Chandler, AZ, USA, 85225
VirTra Inc is a U.S.-based company that is engaged in the sale and development of the judgmental use of force training simulators and firearms training simulators for law enforcement, military, and commercial uses. It sells simulators and related products across the globe through a direct sales force and international distribution partners. The services provided by the company include installation, training, limited warranties, service agreements, and related support. The company sells and supports the use of force training and marksmanship firearms training systems and accessories for law enforcement, military, or civilian use. Company's The product lany includes simulators, upgrade components, scenarios, scenario software, recoil kits, Threat Fire, and other accessories.
Executives
Robert D Ferris director, officer: president 7970 S KYRENE RD, TEMPE AZ 85284
James P Mcdonnell director 295 E CORPORATE PLACE, CHANDLER AZ 85225
Givens John F. Ii director C/O VIRTRA, INC, 7970 S. KYRENE RD, TEMPE AZ 85284
Alanna Boudreau officer: Chief Financial Officer 295 E CORPORATE PLACE, CHANDLER AZ 85225
Gregg C Johnson director 6081 W PARK AVE, CHANDLER AZ 85226
Danielle Diaz officer: Chief Financial Officer 295 E. CORPORATE PLACE, CHANDLER AZ 85225
Marsha J. Foxx officer: Interim VP CAO C/O VIRTRA, INC., 7970 S.KYRENE RD., TEMPE AZ 85284
Jeffrey Dale Brown director 7970 S KYRENE RD, TEMPE, AZ 85284
Judy A Henry officer: CFO, Treasurer and Secretary 7970 S KYRENE RD.,, TEMPE AZ 85284
Mitchell A Saltz director 14500 NORTH NORTHSIGHT BLVD SUITE 116, SCOTTSDALE AZ 85260
Matthew D Burlend director, officer: Chief Operating Officer & VP 7970 S KYRENE RD, TEMPE AZ 85284
James D. Richardson director 7970 S KYRENE RD., TEMPE AZ 85284
L Kelly Jones director, 10 percent owner, officer: ceo 440 NORTH CENTER, ARLINGTON TX 76011
Andrew Wells director 440 NORTH CENTER, ARLINGTON TX 76011
David Louis Ferris 10 percent owner