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WCC (WESCO International) Degree of Operating Leverage : -1.24 (As of Mar. 2025)


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What is WESCO International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. WESCO International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WCC's Degree of Operating Leverage is ranked better than
78% of 150 companies
in the Industrial Distribution industry
Industry Median: 1.09 vs WCC: -1.24

WESCO International Degree of Operating Leverage Historical Data

The historical data trend for WESCO International'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.

WESCO International Degree of Operating Leverage Chart

WESCO International 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 0.01 3.03 3.89 -0.77 1.87

WESCO International 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 -14.43 6.28 2.90 1.87 -1.24

Competitive Comparison of WESCO International's Degree of Operating Leverage

For the Industrial Distribution subindustry, WESCO International'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.


WESCO International's Degree of Operating Leverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, WESCO International's Degree of Operating Leverage distribution charts can be found below:

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


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WESCO International Degree of Operating Leverage Calculation

WESCO International'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
=( 1315.1 (Mar. 2025) / 1286.4 (Mar. 2024) - 1 )/( 21812.5 (Mar. 2025) / 22213.3 (Mar. 2024) - 1 )
=0.0223/-0.018
=-1.24***

* 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.


WESCO International  (NYSE:WCC) 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.


WESCO International Degree of Operating Leverage Related Terms

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


WESCO International Business Description

Traded in Other Exchanges
Address
225 West Station Square Drive, Suite 700, Pittsburgh, PA, USA, 15219
Wesco can be traced back to the late 1800s but was officially founded in 1922, acting as the distribution arm of Westinghouse Electric. Throughout the 1900s, Wesco entered and subsequently exited the consumer electronics, transit, bottling, and nuclear plant distribution markets. It was sold to a private equity firm in 1994 and then went public in 1999, and numerous acquisitions have since been made to fill the gaps in Wesco's geographical and product coverage. Today, the firm primarily distributes electrical, networking, security, and utility equipment used in the construction and repair of structures such as offices, data centers, power transmission lines, and manufacturing plants. Wesco has operations around the globe but generates the majority of its revenue in the United States.
Executives
Squires Nelson John Iii officer: SVP & COO 225 W. STATION SQUARE, PITTSBURGH PA 15219
Christine Ann Wolf officer: SVP & CHRO 7480 FLYING CLOUG DRIVE, MINNEAPOLIS MN 55344
Matthew S Kulasa officer: Sr. VP, Corporate Controller 100 E. WISCONSIN AVENUE, SUITE 2780, MILWAUKEE WI 53202
James Cameron officer: EVP & GM, Util & Broadband 225 W. STATION SQUARE DRIVE, PITTSBURGH PA 15219
David S. Schulz officer: SVP and CFO C/O 2500 COLUMBIA AVENUE, LANCASTER PA 17603
William Clayton Geary officer: EVP & GM, Comm & Sec Solutions C/O ANIXTER INC., 2301 PATRIOT BLVD., GLENVIEW IL 60026
Steven A Raymund director C/O TECH DATA CORP, 5350 TECH DATA DRIVE, CLEARWATER FL 33760
Green Equity Investors Vii, L.p. 10 percent owner 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Hemant Porwal officer: EVP Supply Chain & Operations 225 W. STATION SQUARE DRIVE, PITTSBURGH PA 15219
Glynis Bryan director 5500 WAYZATA BOULEVARD, SUITE 600, GOLDEN VALLEY MN 55416
Easwaran Sundaram director C/O JETBLUE AIRWAYS CORPORATION, 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Diane Lazzaris officer: Vice President, Legal Affairs WESCO INTERNATIONAL, INC., 225 WEST STATION SQUARE DRIVE, PITTSBURGH PA 15219
John Engel officer: SR. VICE PRESIDENT & COO 225 W. STATION SQUARE DRIVE, SUITE 700, PITTSBURGH PA 15219
Sundaram Nagarajan director 28601 CLEMENS ROAD, WESTLAKE OH 44145
Anne M Cooney director ONE PARK PLAZA, 11270 W. PARK PLACE, SUITE 1000, MILWAUKEE WI 53224