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V2X (VVX) Degree of Operating Leverage : 3.40 (As of Mar. 2025)


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What is V2X Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. V2X's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for V2X's Degree of Operating Leverage or its related term are showing as below:

VVX's Degree of Operating Leverage is ranked worse than
77.38% of 305 companies
in the Aerospace & Defense industry
Industry Median: 1.09 vs VVX: 3.40

V2X Degree of Operating Leverage Historical Data

The historical data trend for V2X'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.

V2X Degree of Operating Leverage Chart

V2X 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 -13.22 1.53 -0.16 2.08 5.48

V2X 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 5.24 5.12 5.57 5.48 3.40

Competitive Comparison of V2X's Degree of Operating Leverage

For the Aerospace & Defense subindustry, V2X'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.


V2X's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, V2X's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where V2X's Degree of Operating Leverage falls into.


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V2X Degree of Operating Leverage Calculation

V2X'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
=( 149.038 (Mar. 2025) / 119.143 (Mar. 2024) - 1 )/( 4327.514 (Mar. 2025) / 4030.23 (Mar. 2024) - 1 )
=0.2509/0.0738
=3.40***

* 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.


V2X  (NYSE:VVX) 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.


V2X Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of V2X's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


V2X Business Description

Industry
Traded in Other Exchanges
Address
1875 Campus Commons Drive, Suite 305, McLean, VA, USA, 20191
V2X Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offers facility and logistics services and information technology mission support and engineering and digital integration services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations, and others.
Executives
Dino M Cusumano director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Aipcf Vi Vertex Aerospace Funding Lp 10 percent owner C/O AIP 450 LEXINGTON AVENUE, 40TH FLOOR, NEW YORK NY 10017
Shawn Mural officer: Senior Vice President and CFO 15197 CARVER COURT, WATERFORD VA 20197
Eric M Pillmore director C/O TYCO INTERNATIONAL (US) INC, 9 WEST 57TH ST 43RD FL., NEW YORK NY 10019
Abbas Elegba director 7901 JONES BRANCH DRIVE, SUITE 700, MCLEAN VA 22102
Josephine F. Bjornson officer: Chief Human Resources Officer 7901 JONES BRANCH DRIVE, SUITE 700, MCLEAN VA 22102
William Boyd Noon officer: CVP, Chief Accounting Officer 150 FIELD DRIVE, SUITE 250, LAKE FOREST IL 60045
Michael James Smith officer: See Remarks C/O VECTRUS, INC., 2424 GARDEN OF THE GODS ROAD, SUITE 300, COLORADO SPRINGS CO 80919
Kevin T Boyle officer: SVP, CLO & General Counsel 2424 GARDEN OF THE GODS ROAD, COLORADO SPRINGS CO 80919
Aipcf Vi, Llc 10 percent owner 450 LEXINGTON AVENUE, 40TH FLOOR, NEW YORK NY 10017
Lightship Capital Llc 10 percent owner 330 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10017
Stephen L Waechter director 1100 N GLEBE ROAD, ARLINGTON VA 22201
Joel M. Rotroff director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Neil Snyder director C/O GARDNER DENVER HOLDINGS, INC., 222 EAST ERIE STREET, SUITE 500, MILWAUKEE WI 53202
American Industrial Partners Capital Fund Vi, L.p. 10 percent owner 330 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10017