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Aware (AWRE) Degree of Operating Leverage : -0.14 (As of Mar. 2025)


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What is Aware Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Aware's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AWRE's Degree of Operating Leverage is ranked better than
63.19% of 2665 companies
in the Software industry
Industry Median: 0.79 vs AWRE: -0.14

Aware Degree of Operating Leverage Historical Data

The historical data trend for Aware'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.

Aware Degree of Operating Leverage Chart

Aware 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 -17.10 -0.72 -6.20 -1.20 3.57

Aware 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 -1.68 -1.66 3.02 3.57 -0.14

Competitive Comparison of Aware's Degree of Operating Leverage

For the Software - Application subindustry, Aware'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.


Aware's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Aware Degree of Operating Leverage Calculation

Aware'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
=( -6.134 (Mar. 2025) / -6.051 (Mar. 2024) - 1 )/( 16.576 (Mar. 2025) / 18.36 (Mar. 2024) - 1 )
=0.0137/-0.0972
=-0.14***

* 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.


Aware  (NAS:AWRE) 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.


Aware Degree of Operating Leverage Related Terms

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


Aware Business Description

Industry
Traded in Other Exchanges
N/A
Address
76 Blanchard Road, Burlington, MA, USA, 01803
Aware Inc is a provider of software and services to the biometrics industry. The company's software products are used in government and commercial biometrics systems to identify or authenticate people. The government applications of biometrics systems include border control, visa applicant screening, law enforcement, national defense, intelligence, secure credentialing, access control, and background checks. Its commercial applications include user authentication for login to mobile devices, computers, networks, and software programs, user authentication for financial transactions and purchases. Its geographical segments include the United States, the United Kingdom, and the Rest of the world, out of which it derives maximum revenue from United States.
Executives
Stafford John S Iii director, 10 percent owner 230 SOUTH LASALLE STREET 400, CHICAGO IL 60604
Peter R. Faubert director 50 NAGOG PARK, ACTON MA 01720
David K Traverse officer: Principal Financial Officer 108 ADAMS STREET, DUNSTABLE MA 01827
Robert A Eckel director, officer: CEO and President C/O AWARE, INC., 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
David Brian Barcelo officer: Chief Financial Officer 15 DAWN CIRCLE, ANDOVER MA 01810
Ronin Trading, Llc 10 percent owner 350 N. ORLEANS STREET, 2N, CHICAGO IL 60654
Craig A Herman officer: Chief Revenue Officer 15 ABBOT STREET, MARBLEHEAD MA 01945
Mohamed Lazzouni officer: Chief Technology Officer C/O VIISAGE TECHNOLOGY, INC., 296 CONCORD ROAD, BILLIERCA MA 01821
Gary Evee director 36 CONCETTA SASS DRIVE, RANDOLPH MA 02368
Ronin Capital, Llc 10 percent owner 350 N. ORLEANS, SUITE 2N, CHICAGO IL 60654
Brent P Johnstone director 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
Richard P Moberg director C/O AWARE INC, 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
David J Martin officer: Chief Financial Officer
Adrian F Kruse director C/O AWARE INC, 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
Kevin Thomas Russell director, officer: Chief Legal and Admin. Officer 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730-1432