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VTMX (Corporacion Inmobiliaria VestaB de CV) Degree of Operating Leverage : 3.46 (As of Jun. 2024)


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What is Corporacion Inmobiliaria VestaB de CV Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Corporacion Inmobiliaria VestaB de CV's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 3.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Corporacion Inmobiliaria VestaB de CV's Degree of Operating Leverage or its related term are showing as below:

VTMX's Degree of Operating Leverage is ranked worse than
76.55% of 1723 companies
in the Real Estate industry
Industry Median: 0.88 vs VTMX: 3.46

Corporacion Inmobiliaria VestaB de CV Degree of Operating Leverage Historical Data

The historical data trend for Corporacion Inmobiliaria VestaB de CV'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.

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Corporacion Inmobiliaria VestaB de CV Degree of Operating Leverage Chart

Corporacion Inmobiliaria VestaB de CV 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 4.59 -1.03 43.67 1.04 1.99

Corporacion Inmobiliaria VestaB de CV Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 1.77 0.89 1.99 7.45 3.46

Competitive Comparison of Corporacion Inmobiliaria VestaB de CV's Degree of Operating Leverage

For the Real Estate - Diversified subindustry, Corporacion Inmobiliaria VestaB de CV'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.


Corporacion Inmobiliaria VestaB de CV's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Corporacion Inmobiliaria VestaB de CV's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Corporacion Inmobiliaria VestaB de CV's Degree of Operating Leverage falls into.



Corporacion Inmobiliaria VestaB de CV Degree of Operating Leverage Calculation

Corporacion Inmobiliaria VestaB de CV's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 559.32 (Jun. 2024) / 362.09 (Jun. 2023) - 1 )/( 235.95 (Jun. 2024) / 194.339 (Jun. 2023) - 1 )
=0.5447/0.2141
=2.54***

* 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.


Corporacion Inmobiliaria VestaB de CV  (NYSE:VTMX) 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.


Corporacion Inmobiliaria VestaB de CV Degree of Operating Leverage Related Terms

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Corporacion Inmobiliaria VestaB de CV Business Description

Traded in Other Exchanges
Address
Paseo de los Tamarindos, 90 Torre 2, 28th Floor, Col. Bosques de las Lomas, Cuajimalpa, Mexico, MEX, 05120
Corporacion Inmobiliaria Vesta SAB de CV is a real estate company dedicated to the development and leasing of industrial buildings and distribution centers in Mexico. The Company's primary business is the acquisition, development, and management of industrial and distribution center real estate. The company designs and constructs park-to-suit projects across various industries; undertakes build-to-suit projects; and provides site selection, design and engineering, and sale and leaseback services. The primary source of revenues is the rental income received from customers under operating leases. It serves aerospace, automotive, food and beverage, logistics, medical devices, plastics, and other industries.