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Verbund AG (WBO:VER) Degree of Operating Leverage : 0.80 (As of Sep. 2024)


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What is Verbund AG Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Verbund AG's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WBO:VER's Degree of Operating Leverage is ranked worse than
52.66% of 395 companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.67 vs WBO:VER: 0.80

Verbund AG Degree of Operating Leverage Historical Data

The historical data trend for Verbund AG'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.

Verbund AG Degree of Operating Leverage Chart

Verbund AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.66 -0.74 0.85 0.80 40.65

Verbund AG Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.28 40.65 -1.66 0.36 0.80

Competitive Comparison of Verbund AG's Degree of Operating Leverage

For the Utilities - Renewable subindustry, Verbund AG'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.


Verbund AG's Degree of Operating Leverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Verbund AG's Degree of Operating Leverage distribution charts can be found below:

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



Verbund AG Degree of Operating Leverage Calculation

Verbund AG's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2597.727 (Sep. 2024) / 4213.719 (Sep. 2023) - 1 )/( 6497.184 (Sep. 2024) / 12518.476 (Sep. 2023) - 1 )
=-0.3835/-0.481
=0.80***

* 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.


Verbund AG  (WBO:VER) 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.


Verbund AG Degree of Operating Leverage Related Terms

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


Verbund AG Business Description

Address
Am Hof 6a, Vienna, AUT, 1010
Founded in 1947 through a nationalization act, Verbund is the leading power producer in Austria. The Austrian state owns 51% of its capital. Hydro accounts for more than 90% of the total power output. Hydro power is generated from reservoirs and pumped storage plants in the Austrian Alps, and run-of-river plants in Austria and southern Germany. Total hydro capacity amounts to 8.4 GW. Verbund also owns the Austrian electricity grid through its fully owned subsidiary AP. In 2021, the firm acquired 51% of Gas Connect Austria, a gas transmission and distribution system operator. The group also owns one CCGT and is involved in trading and development of wind and solar capacity.
Executives
Dr. Susanna Zapreva-hennerbichler Board of Directors
Mag. Dr. Achim Kaspar Board of Directors
Dr. Peter F. Kollmann Board of Directors
Mag. Dr. Mba Michael Strugl Board of Directors