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ATEN (A10 Networks) Degree of Operating Leverage : 3.92 (As of Mar. 2025)


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What is A10 Networks Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. A10 Networks's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for A10 Networks's Degree of Operating Leverage or its related term are showing as below:

ATEN's Degree of Operating Leverage is ranked worse than
77.3% of 2665 companies
in the Software industry
Industry Median: 0.79 vs ATEN: 3.92

A10 Networks Degree of Operating Leverage Historical Data

The historical data trend for A10 Networks'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.

A10 Networks Degree of Operating Leverage Chart

A10 Networks 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 -36.10 6.96 5.03 2.83 3.47

A10 Networks 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 3.26 3.56 -36.07 3.47 3.92

Competitive Comparison of A10 Networks's Degree of Operating Leverage

For the Software - Infrastructure subindustry, A10 Networks'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.


A10 Networks's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, A10 Networks's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where A10 Networks's Degree of Operating Leverage falls into.


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A10 Networks Degree of Operating Leverage Calculation

A10 Networks'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
=( 47.323 (Mar. 2025) / 39.694 (Mar. 2024) - 1 )/( 267.158 (Mar. 2025) / 254.684 (Mar. 2024) - 1 )
=0.1922/0.049
=3.92***

* 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.


A10 Networks  (NYSE:ATEN) 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.


A10 Networks Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of A10 Networks's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


A10 Networks Business Description

Industry
Traded in Other Exchanges
Address
2300 Orchard Parkway, San Jose, CA, USA, 95131
A10 Networks Inc is a provider of security and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments of its multinational enterprise, communication, cloud and web service provider customers who strive to provide business-critical applications and networks that are secure, available, and efficient. As cyber-attacks increase in volume and complexity, the company integrates security and artificial intelligence (AI) enabled capabilities in its solutions that enable its customers to continue to adapt to market trends in hybrid cloud, AI-ready data centers and the ever-increasing need for high-performance, high availability and low latency. The company generates the maximum of its revenue from Americas.
Executives
Robert Scott Weber officer: General Counsel 2300 ORCHARD PARKWAY, SAN JOSE CA 95131
Dhrupad Trivedi officer: Chief Executive Officer 1 N. BRENTWOOD BLVD., SUITE 1599, SAINT LOUIS MO 63105
Brian Becker officer: Interim CFO 230 HOWES DRIVE, LOS GATOS CA 95032
Peter Y Chung director, other: Indirect GP of 10% Owner C/O SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLR, BOSTON MA 02116
Karen S. Thomas officer: EVP, Worldwide Sales and Mkt 2300 ORCHARD PARKWAY, SAN JOSE CA 95125
Matthew P Bruening officer: EVP, Worldwide Sales & Mktg 2300 ORCHARD PARKWAY, SAN JOSE CA 95131
Viex Opportunities Fund, Lp Series One other: See Explanation of Responses C/O VIEX CAPITAL ADVISORS, LLC, 825 THIRD AVENUE, 33RD FLOOR, NEW YORK NY 10022
Robert D Cochran director, officer: VP, Legal & Corp Collaboration 2300 ORCHARD PARKWAY, SAN JOSE CA 95131
Dana Elizabeth Wolf director 2300 ORCHARD PARKWAY, SAN JOSE CA 95131
Viex Opportunities Fund, Lp - Series Two other: See Explanation of Responses C/O VIEX CAPITAL ADVISORS, LLC, 825 THIRD AVENUE, 33RD FLOOR, NEW YORK NY 10022
Summit Partners L P other: Manager of GP of 10% Owner 222 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Mary Dotz director 280 N BERNARDO AVENUE, MOUNTAIN VIEW CA 94043
Gunter Reiss officer: VP Worldwide Mktg & Bus Dev 2300 ORCHARD PARKWAY, SAN JOSE CA 95131
Thomas Constantino officer: EVP, Chief Financial Officer 2300 ORCHARD PARKWAY, SAN JOSE CA 95131
Lee Chen director, 10 percent owner, officer: CEO and President C/O A10 NETWORKS, INC, 2300 ORCHARD PARK, SAN JOSE CA 95131