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ZBRA (Zebra Technologies) Degree of Operating Leverage : 2.99 (As of Mar. 2025)


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What is Zebra Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Zebra Technologies's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.99. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ZBRA's Degree of Operating Leverage is ranked worse than
70.71% of 2414 companies
in the Hardware industry
Industry Median: 1 vs ZBRA: 2.99

Zebra Technologies Degree of Operating Leverage Historical Data

The historical data trend for Zebra 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.

Zebra Technologies Degree of Operating Leverage Chart

Zebra Technologies 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 7.59 1.93 -1.39 1.81 3.55

Zebra Technologies 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 1.83 2.13 -0.16 3.55 2.99

Competitive Comparison of Zebra Technologies's Degree of Operating Leverage

For the Communication Equipment subindustry, Zebra 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.


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

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

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


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Zebra Technologies Degree of Operating Leverage Calculation

Zebra Technologies'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
=( 794 (Mar. 2025) / 522 (Mar. 2024) - 1 )/( 5114 (Mar. 2025) / 4354 (Mar. 2024) - 1 )
=0.5211/0.1746
=2.99***

* 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.


Zebra Technologies  (NAS:ZBRA) 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.


Zebra Technologies Degree of Operating Leverage Related Terms

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


Zebra Technologies Business Description

Address
3 Overlook Point, Lincolnshire, IL, USA, 60069
Zebra Technologies is a leading provider of automatic identification and data capture technology to enterprises. Its solutions include barcode printers and scanners, mobile computers, and workflow optimization software. The firm primarily serves the retail, transportation logistics, manufacturing, and healthcare markets, designing custom solutions to improve efficiency at its customers.
Executives
Anders Gustafsson director, officer: Chief Executive Officer C/O ZEBRA TECHNOLOGIES CORPORATION, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
O'sullivan Colleen M officer: Chief Accounting Officer C/O ZEBRA TECHNOLOGIES CORPORATION, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Michael Cho officer: SVP, Corporate Development C/O ZEBRA TECHNOLOGIES CORPORATION, LINCOLNSHIRE IL 60069
Joseph Ramsey White officer: Chief Product & Solutions C/O ZEBRA TECHNOLOGIES, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Richard Edward Hudson officer: Chief Revenue Officer C/O ZEBRA TECHNOLOGIES CORPORATION, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Cristen L Kogl officer: SVP, General Counsel & Secty 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Armstrong Robert John Jr officer: Chief Marketing Officer C/O ZEBRA TECHNOLOGIES, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Jeffrey F Schmitz officer: SVP, Chief Marketing Officer C/O ZEBRA TECHNOLOGIES CORPORATION, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Nathan Andrew Winters officer: Acting Chief Financial Officer C/O ZEBRA TECHNOLOGIES CORPORATION, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Bill Burns officer: SVP, Chief Product & Solutions C/O ZEBRA TECHNOLOGIES CORPORATION, 1 ZEBRA PLAZA, HOLTSVILLE NY 11742-1300
Frank Blaise Modruson director C/O ZEBRA TECHNOLOGIES CORPORATION, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Richard L Keyser director 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Satish Dhanasekaran director 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Tamara Dionne Froese officer: Chief Supply Chain Officer C/O ZEBRA TECHNOLOGIES, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Stephen Edgar Williams officer: SVP, Global Supply Chain C/O ZEBRA TECHNOLOGIES CORPORATION, 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069