GURUFOCUS.COM » STOCK LIST » Technology » Software » Backblaze Inc (NAS:BLZE) » Definitions » Degree of Operating Leverage

BLZE (Backblaze) Degree of Operating Leverage : -0.95 (As of Sep. 2024)


View and export this data going back to 2021. Start your Free Trial

What is Backblaze Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Backblaze's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -0.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BLZE's Degree of Operating Leverage is ranked better than
68.04% of 2647 companies
in the Software industry
Industry Median: 0.68 vs BLZE: -0.95

Backblaze Degree of Operating Leverage Historical Data

The historical data trend for Backblaze'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.

Backblaze Degree of Operating Leverage Chart

Backblaze Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- - 2.96 6.22 0.94

Backblaze Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.84 0.94 -0.16 -0.65 -0.95

Competitive Comparison of Backblaze's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Backblaze'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.


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

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

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



Backblaze Degree of Operating Leverage Calculation

Backblaze's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -42.675 (Sep. 2024) / -57.689 (Sep. 2023) - 1 )/( 122.579 (Sep. 2024) / 96.208 (Sep. 2023) - 1 )
=-0.2603/0.2741
=-0.95***

* 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.


Backblaze  (NAS:BLZE) 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.


Backblaze Degree of Operating Leverage Related Terms

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


Backblaze Business Description

Industry
Traded in Other Exchanges
N/A
Address
201 Baldwin Avenue, San Mateo, CA, USA, 94401
Backblaze Inc provides cloud storage services. The company offers services such as Backblaze B2 Cloud Storage which enables customers to store data, developers to build applications, and partners to expand their use cases. It is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases including backups, multi-cloud, application development, and ransomware protection and Backblaze Computer Backup automatically backs up data from laptops and desktops for businesses and individuals. Geographically, it derives a majority of revenue from the United States and the rest from the United Kingdom, Canada, and other regions.
Executives
Gleb Budman director, 10 percent owner, officer: See Remarks 500 BEN FRANKLIN CT, SAN MATEO CA 94401
Tina Cessna officer: Senior VP, Engineering 500 BEN FRANKLIN CT., SAN MATEO CA 94401
Francis P Patchel officer: Chief Financial Officer 500 BEN FRANKLIN CT, SAN MATEO CA 94401
Barbara H Nelson director C/O QUANTUM CORP, 501 SYCAORE DR, MILPITAS CA 95035
Investments Plc Tmt 10 percent owner 13 CASTLE STREET, ST. HELIER Y9 JE1 1ES
Timothy M Nufire director, 10 percent owner, officer: Chief Cloud Officer 500 BEN FRANKLIN CT, SAN MATEO CA 94401
Brian K Wilson director, 10 percent owner, officer: Chief Technology Officer 500 BEN FRANKLIN CT, SAN MATEO CA 94401
Charles J. Jones 10 percent owner 500 BEN FRANKLIN COURT, SAN MATEO CA 94401
Kwok Hang Ng 10 percent owner 500 BEN FRANKLIN COURT, SAN MATEO CA 94401
Clal Insurance Enterprises Holdings Ltd 10 percent owner 36 RAUL WALENBERG ST, TEL-AVIV L3 6136902
Whetstone Capital Advisors, Llc 10 percent owner 2001 SHAWNEE MISSION PARKWAY, SHAWNEE MISSION KS 66205
Jocelyn Carter-miller director 3698 NW 15TH STREET, LAUDERHILL FL 33311
An Evelyn D director 1301 NE 103RD STREET, MIAMI SHORES FL 33138
Earl E Fry director C/O INFORMATICA CORPORATION, 2100 SEAPORT BLVD., REDWOOD CITY CA 94063