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WSTL (Westell Technologies) Degree of Operating Leverage : 5.47 (As of Sep. 2024)


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What is Westell Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Westell Technologies's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 5.47. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WSTL's Degree of Operating Leverage is ranked worse than
80.36% of 2414 companies
in the Hardware industry
Industry Median: 1 vs WSTL: 5.47

Westell Technologies Degree of Operating Leverage Historical Data

The historical data trend for Westell Technologies'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.

Westell Technologies Degree of Operating Leverage Chart

Westell Technologies Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.94 12.77 -17.00 -1.10 1,837.98

Westell Technologies Semi-Annual Data
Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep22 Sep23 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 2.50 1,837.98 - -10.25 5.47

Competitive Comparison of Westell Technologies's Degree of Operating Leverage

For the Communication Equipment subindustry, Westell Technologies'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.


Westell Technologies's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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Westell Technologies Degree of Operating Leverage Calculation

Westell Technologies'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
=( 0.424 (Sep. 2024) / 1.33 (Sep. 2023) - 1 )/( 18.584 (Sep. 2024) / 21.225 (Sep. 2023) - 1 )
=-0.6812/-0.1244
=5.47***

* 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.


Westell Technologies  (OTCPK:WSTL) 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.


Westell Technologies Degree of Operating Leverage Related Terms

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


Westell Technologies Business Description

Traded in Other Exchanges
N/A
Address
750 North Commons Drive, Aurora, IL, USA, 60504
Westell Technologies Inc designs, manufactures, and distributes telecommunications solutions, which are sold to major telephone companies. It is organized into the following operating segments: In-Building Wireless (IBW), Intelligent Site Management (ISM), and Communications Network Solutions (CNS). The majority of its revenue is generated from the ISM segment, which includes a suite of remote units, which provide machine-to-machine communications that enable operators to remotely monitor, manage, and control physical site infrastructure and support systems. Geographically, it derives a majority of its revenue from the United States of America.
Executives
Cary B Wood director 425 NORTH MARTINGALE ROAD, SUITE 1000, SCHAUMBURG IL 60173
Mark A Zorko director 9265 FAWN LAKE DR, RALEIGH NC 27617
Penny Robert C Iii director, 10 percent owner 750 NORTH COMMONS DRIVE AURORA IL 60504
Scott C Chandler director 9635 MAROON CIRCLE SUITE 400 ENGLEWOOD CO 80112
Robert W Foskett director, 10 percent owner 750 NORTH COMMONS DRIVE AURORA IL 60504
Kirk R Brannock director 750 NORTH COMMONS DRIVE AURORA IL 60504
Timothy L Duitsman director, officer: President & CEO 750 N COMMONS DR AURORA IL 60504
Jeniffer L Jaynes officer: Interim CFO 750 N COMMONS DRIVE AURORA IL 60504
Jesse Swartwood officer: SVP, Worldwide Sales 750 N. COMMONS DRIVE AURORA IL 60504
Alfred S John officer: President & CEO 750 N COMMONS DRIVE AURORA IL 60504
Thomas P. Minichiello officer: SVP,CFO,Treasurer,Secretary 750 N. COMMONS DRIVE, AURORA IL 60504
Dennis O Harris director 750 NORTH COMMONS DRIVE AURORA IL 60504
Matthew B Brady officer: President & CEO 750 N COMMONS DR, AURORA IL 60504
Michael T Moran officer: SVP, IBW 750 N COMMONS DRIVE AURORA IL 60504
Jeannie Diefenderfer director C/O MRV COMMUNICATIONS, INC., 20415 NORDHOFF STREET, CHATSWORTH CA 91311

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