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CMBM (Cambium Networks) Degree of Operating Leverage : -20.67 (As of Sep. 2024)


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What is Cambium Networks Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cambium Networks's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -20.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CMBM's Degree of Operating Leverage is ranked better than
92.46% of 2415 companies
in the Hardware industry
Industry Median: 1.02 vs CMBM: -20.67

Cambium Networks Degree of Operating Leverage Historical Data

The historical data trend for Cambium Networks'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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Cambium Networks Degree of Operating Leverage Chart

Cambium Networks Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial -8.32 702.41 2.63 3.86 15.70

Cambium Networks Quarterly Data
Dec19 Mar20 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 Premium Member Only 19.16 15.70 10.22 12.53 -20.67

Competitive Comparison of Cambium Networks's Degree of Operating Leverage

For the Communication Equipment subindustry, Cambium Networks'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.


Cambium Networks's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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Cambium Networks Degree of Operating Leverage Calculation

Cambium Networks'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
=( -82.815 (Sep. 2024) / -10.084 (Sep. 2023) - 1 )/( 172.215 (Sep. 2024) / 264.496 (Sep. 2023) - 1 )
=7.2125/-0.3489
=-20.67***

* 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.


Cambium Networks  (NAS:CMBM) 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.


Cambium Networks Degree of Operating Leverage Related Terms

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Cambium Networks Business Description

Industry
Traded in Other Exchanges
Address
C/o Cambium Networks, Inc, 3800 Golf Road, Suite 360, Rolling Meadows, IL, USA, 60008
Cambium Networks Corp provides wireless broadband networking infrastructure solutions for network operators, including medium-sized wireless Internet service providers, enterprises, and government agencies. The company geographically operates in North America; Europe, Middle East and Africa; Caribbean and Latin America; and Asia Pacific. It derives maximum revenue from North America.
Executives
Vikram Verma director 810 WEST MAUDE AVENUE, SUNNYVALE CA 94085
Kevin J Lynch director 201 POST STREET, SUITE 1000, SAN FRANCISCO CA 94108
Archana Nirwan officer: Chief Human Resources Officer 5470 CAMINITO EXQUISITO, SAN DIEGO CA 92130
John Monroy Becerril officer: Controller & Chief Acct Off'r C/O CAMBIUM NETWORKS, INC., 3800 GOLF ROAD, SUITE 360, ROLLING MEADOWS IL 60008
Andrew P Bronstein officer: CFO 10877 WILSHIRE BOULEVARD, 18TH FLOOR, LOS ANGELES CA 90024
Felt Bruce C. Jr. director C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Neal M Kurk other: Relative of CEO/Director RR 1, WEARE NH 03281
Kurk Morgan C S director, officer: President and CEO C/O COMMSCOPE HOLDING COMPANY, INC., 1100 COMMSCOPE PLACE, SE, HICKORY NC 28602
Sally Rau officer: General Counsel PO BOX 59366, SCHAUMBURG IL 60159
Vibhu Vivek officer: Senior VP, Products 136 MILL CREEK ROAD, FREMONT CA 94539
Ronald G Ryan officer: Senior VP, Gbl Channel Mgmt 3355 RYAN TRAIL, MCKINNEY TX 75071
Scott Imhoff officer: Senior VP, Product Mgmt 653 BENT RIDGE LANE, BARRINGTON IL 60010
Graaf Raymond De officer: Senior VP, Operations C/O IXIA, 26601 WEST AGOURA ROAD, CALABASAS CA 91302
Alexander R Slusky director, 10 percent owner 456 MONTGOMERY STREET, 19TH FLOOR, SAN FRANCISCO CA 94104
Robert S Amen director, 10 percent owner C/O CAMBIUM NETWORKS CORPORATION, 38 GOLF ROAD, SUITE 360, ROLLING MEADOWS IL 60008