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AMD (Advanced Micro Devices) Degree of Operating Leverage : 11.96 (As of Mar. 2025)


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What is Advanced Micro Devices Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Advanced Micro Devices's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 11.96. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Advanced Micro Devices's Degree of Operating Leverage or its related term are showing as below:

AMD's Degree of Operating Leverage is ranked worse than
89.63% of 993 companies
in the Semiconductors industry
Industry Median: 1.01 vs AMD: 11.96

Advanced Micro Devices Degree of Operating Leverage Historical Data

The historical data trend for Advanced Micro Devices'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.

Advanced Micro Devices Degree of Operating Leverage Chart

Advanced Micro Devices 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 4.08 2.64 -1.51 13.58 18.11

Advanced Micro Devices 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 -174.77 -87.90 165.81 18.11 11.96

Competitive Comparison of Advanced Micro Devices's Degree of Operating Leverage

For the Semiconductors subindustry, Advanced Micro Devices'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.


Advanced Micro Devices's Degree of Operating Leverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Advanced Micro Devices's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Advanced Micro Devices's Degree of Operating Leverage falls into.


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Advanced Micro Devices Degree of Operating Leverage Calculation

Advanced Micro Devices'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
=( 2837 (Mar. 2025) / 789 (Mar. 2024) - 1 )/( 27750 (Mar. 2025) / 22800 (Mar. 2024) - 1 )
=2.5957/0.2171
=11.96***

* 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.


Advanced Micro Devices  (NAS:AMD) 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.


Advanced Micro Devices Degree of Operating Leverage Related Terms

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Advanced Micro Devices Business Description

Address
2485 Augustine Drive, Santa Clara, CA, USA, 95054
Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications. AMD's traditional strength was in central processing units and graphics processing units used in PCs and data centers. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox. In 2022, the firm acquired field-programmable gate array leader Xilinx to diversify its business and augment its opportunities in key end markets such as data center and automotive.
Executives
Mark D Papermaster officer: SVP & Chief Technology Officer ONE AMD PLACE, SUNNYVALE CA 94088
Philip Guido officer: EVP & Chief Commercial Officer 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Lisa T Su officer: SVP, GM Global Business Units C/O ADVANCED MICRO DEVICES, INC., 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Forrest Eugene Norrod officer: SVP & GM EESC 9507 GLENLAKE DRIVE, AUSTIN TX 78730
Jean X. Hu officer: EVP, CFO and Treasurer 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Harry A Wolin officer: SVP & GC ONE AMD PLACE, SUNNYVALE CA 94088
Joseph A Householder director 101 ASH STREET HQ18, SAN DIEGO CA 92101
Darla M Smith other: Chief Accounting Officer 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Paul Darren Grasby officer: SVP & CSO, President EMEA 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Victor Peng officer: President, AECG MIPS TECHNOLOGIES INC, 1225 CHARLESTON ROAD, MOUNTAIN VIEW CA 94043
Jack M Huynh officer: SVP & GM, Computing & Graphics 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Devinder Kumar officer: SVP, CFO & Treasurer ONE AMD PLACE, MS 68, SUNNYVALE CA 94088
Rick Bergman other: SR VP & GM GPG C/O ADVANCED MICRO DEVICES, INC., 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Jon A Olson director 2100 LOGIC DRIVE, SAN JOSE CA 95124
Elizabeth W Vanderslice director C/O XILINX INC, 2100 LOGIC DRIVE, SAN JOSE CA 95124