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Soitec (CHIX:SOIP) Degree of Operating Leverage : 4.38 (As of Mar. 2025)


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What is Soitec Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Soitec's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CHIX:SOIp's Degree of Operating Leverage is ranked worse than
77.99% of 995 companies
in the Semiconductors industry
Industry Median: 0.97 vs CHIX:SOIp: 4.38

Soitec Degree of Operating Leverage Historical Data

The historical data trend for Soitec'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.

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Soitec Degree of Operating Leverage Chart

Soitec Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.59 3.20 0.96 1.65 4.38

Soitec Semi-Annual Data
Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 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 0.96 0.64 1.65 3.74 4.38

Competitive Comparison of Soitec's Degree of Operating Leverage

For the Semiconductor Equipment & Materials subindustry, Soitec'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.


Soitec's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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Soitec Degree of Operating Leverage Calculation

Soitec'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
=( 138 (Mar. 2025) / 226 (Mar. 2024) - 1 )/( 891 (Mar. 2025) / 978 (Mar. 2024) - 1 )
=-0.3894/-0.089
=4.38***

* 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.


Soitec  (CHIX:SOIp) 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.


Soitec Degree of Operating Leverage Related Terms

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


Soitec Business Description

Industry
Address
Parc Technologique des Fontaines, Chemin des Franques, Bernin, FRA, 38190
Soitec is a French company that manufactures and sells engineered wafers for the semiconductor industry. Soitec is the number-one provider of silicon-on-insulator, or SOI, wafers worldwide and also provides other engineered substrates like gallium nitride or silicon carbide. Soitec sells wafers to fabrication plants that use the them to produce chips. Soitec has facilities in France, Singapore, and China.

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