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BRQSF (Borqs Technologies) Degree of Operating Leverage : 7.79 (As of Jun. 2024)


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What is Borqs Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Borqs Technologies's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 7.79. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BRQSF's Degree of Operating Leverage is ranked worse than
84.98% of 2669 companies
in the Software industry
Industry Median: 0.79 vs BRQSF: 7.79

Borqs Technologies Degree of Operating Leverage Historical Data

The historical data trend for Borqs Technologies'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.

Borqs Technologies Degree of Operating Leverage Chart

Borqs Technologies Annual Data
Trend Jun16 Jun17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial 2.54 -0.22 3.61 -0.78 -1.42

Borqs Technologies Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -0.92 -0.78 -15.92 -1.42 7.79

Competitive Comparison of Borqs Technologies's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Borqs Technologies'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.


Borqs Technologies's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Borqs Technologies Degree of Operating Leverage Calculation

Borqs Technologies's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 15.353 (Jun. 2024) / -37.9 (Jun. 2023) - 1 )/( 33.827 (Jun. 2024) / 41.268 (Jun. 2023) - 1 )
=-1.4051/-0.1803
=7.79***

* 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.


Borqs Technologies  (OTCPK:BRQSF) 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.


Borqs Technologies Degree of Operating Leverage Related Terms

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Borqs Technologies Business Description

Traded in Other Exchanges
N/A
Address
7 Shing Yip Street, Office B, 21st Floor, Legend Tower, Kwun Tong, Kowloon, Hong Kong, HKG
Borqs Technologies Inc is a provider of software development services and products, providing customizable, differentiated, and scalable Android-based smart connected devices and cloud service solutions. The company generates revenue in the form of software, and hardware revenue. A substantial portion of its revenue is generated in the form of hardware revenue which it earns for manufacturing customized products like trackers and smart watches, ruggedized handsets, tablets and smart phones, and mobile connectivity modules for its customers. Its geographical segments include the United States which is its key revenue-generating market, China, India, and the rest of the world.
Executives
Bill Huang director 6190 CORNERSTONE COURT, SUITE 202, SAN DIEGO CA 92121
Asset Horizon International Ltd 10 percent owner FLAT C, 8/F., JONSIM PLACE, 228 QUEEN'S ROAD EAST, HONG KONG K3 000 000
Zhengqi International Holding Ltd 10 percent owner 40 WALL STREET, 28TH FL, NEW YORK NY 10005
George Thangadurai officer: EVP and President of Int Bus 6190 CORNERSTONE COURT, SAN DIEGO CA 92121
Simon Sun officer: EVP & Co-GM of Prod. Bus. Unit 6190 CORNERSTONE COURT, SUITE 202, SAN DIEGO CA 92121
Wong Joseph Wai Leung director 6190 CORNERSTONE COURT, SUITE 202, SAN DIEGO CA 92121
Gene Wuu officer: EVP & GM of Cloud Bus Unit 6190 CORNERSTONE COURT, SUITE 202, SAN DIEGO CA 92121
Hareesh Ramanna officer: EVP and GM of Cloud Bus Unit 6190 CORNERSTONE COURT, SUITE 202, SAN DIEGO CA 92121
Ye Eric Tao director 6190 CORNERSTONE COURT, SUITE 202, SAN DIEGO CA 92121
Pat Chan director, officer: Chair. of the Board, CEO & Pre UTSTARCOM, INC., 1275 HARBOR BAY PARKWAY, ALAMEDA CA 94502
Anthony K Chan officer: CFO, EVP Corp. Finance 32108 ALVARADO BLVD., UNIT 138, UNION CITY CA 94587
Intel Corp 10 percent owner 2200 MISSION COLLEGE BLVD, RNB-4-151, SANTA CLARA CA 95054
Bob Li officer: EVP Corp Affairs & China Sale 6190 CORNERSTONE COURT, SUITE 202, SAN DIEGO CA 92121
Norwest Venture Partners X L P 10 percent owner 525 UNIVERSITY AVE SUITE 800, PALO ALTO CA 94301
Jian Tu director, officer: President & Chairman 40 WALL STREET, 28TH FL, NEW YORK NY 10005