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Box (BOX) Degree of Operating Leverage : 7.40 (As of Jan. 2025)


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What is Box Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Box's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 7.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BOX's Degree of Operating Leverage is ranked worse than
83.5% of 2667 companies
in the Software industry
Industry Median: 0.82 vs BOX: 7.40

Box Degree of Operating Leverage Historical Data

The historical data trend for Box'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.

Box Degree of Operating Leverage Chart

Box Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.82 -1.98 -18.17 14.61 7.40

Box Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 14.61 7.75 9.87 16.66 7.40

Competitive Comparison of Box's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Box'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.


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

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

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


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Box Degree of Operating Leverage Calculation

Box's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 91.235 (Jan. 2025) / 66.427 (Jan. 2024) - 1 )/( 1090.13 (Jan. 2025) / 1037.741 (Jan. 2024) - 1 )
=0.3735/0.0505
=7.40***

* 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.


Box  (NYSE:BOX) 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.


Box Degree of Operating Leverage Related Terms

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


Box Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Box Inc (NYSE:BOX) » Definitions » Degree of Operating Leverage
Traded in Other Exchanges
Address
900 Jefferson Avenue, Redwood City, CA, USA, 94063
Box is a cloud-based content services platform that provides cloud-based storage and workflow collaboration services for enterprise customers. The firm was founded in 2005 as a file-sync and sharing provider. More recently, however, the company has focused on bolstering its product portfolio by adding tools such as governance and e-signature to enhance workflow management and collaboration.
Executives
Dylan C Smith director, 10 percent owner, officer: Chief Financial Officer C/O BOX INC, 4440 EL CAMINO REAL, LOS ALTOS CA 94022
Eli Berkovitch officer: VP Chief Acct Ofr & Controller 900 JEFFERSON AVE, REDWOOD CITY CA 94063
Aaron Levie director, 10 percent owner, officer: Chief Executive Officer C/O BOX INC, 4440 EL CAMINO, LOS ALTOS CA 94022
Daniel J Levin director, 10 percent owner, officer: President & COO 4440 EL CAMINO REAL, LOS ALTOS CA 94022
Dana L Evan director 550 EAST TIMPANOGOS CIRCLE, *, OREM UT 84097
Jack R Lazar director 400 W. CESAR CHAVEZ, ATTN: STOCK ADMINISTRATION, AUSTIN TX 78701
Bethany Mayer director C/O IXIA, 26601 W. AGOURA ROAD, CALABASAS CA 91302
Amit Walia director 2100 SEAPORT BLVD., REDWOOD CITY CA 94063
Kimberly Hammonds director 100 EAST DAVIE STREET, RALEIGH NC 27601
John Ihn Park director C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, NEW YORK NY 10019
Jeff Mannie officer: VP Controller & Chief Acct Ofr C/O BOX INC, 4440 EL CAMINO REAL, LOS ALTOS CA 94022
Carl Bass director C/O AUTODESK INC, 111 MELNNIS PARKWAY, SAN RAFAEL CA 94903
Peter Leav director 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Josh Stein director C/O DRAPER FISHER JURVETSON, 2882 SAND HILL ROAD SUITE 150, MENLO PARK CA 94025
Rory O'driscoll director, 10 percent owner 950 TOWER LANE, SUITE 700, FOSTER CITY CA 94404