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DBX (Dropbox) Degree of Operating Leverage : 24.07 (As of Mar. 2025)


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What is Dropbox Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Dropbox's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 24.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DBX's Degree of Operating Leverage is ranked worse than
93% of 2658 companies
in the Software industry
Industry Median: 0.79 vs DBX: 24.07

Dropbox Degree of Operating Leverage Historical Data

The historical data trend for Dropbox'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.

Dropbox Degree of Operating Leverage Chart

Dropbox Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -16.48 11.94 2.15 1.00 14.39

Dropbox Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 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 4.19 13.31 14.27 14.39 24.07

Competitive Comparison of Dropbox's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Dropbox'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.


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

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

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


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Dropbox Degree of Operating Leverage Calculation

Dropbox'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
=( 526.6 (Mar. 2025) / 442.9 (Mar. 2024) - 1 )/( 2541.6 (Mar. 2025) / 2521.8 (Mar. 2024) - 1 )
=0.189/0.0079
=24.07***

* 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.


Dropbox  (NAS:DBX) 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.


Dropbox Degree of Operating Leverage Related Terms

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


Dropbox Business Description

Industry
Address
1800 Owens Street, San Francisco, CA, USA, 94158
Dropbox is a leading provider of cloud-storage and content collaboration tools with an emphasis on individuals and SMB. The company was founded in 2007 and was a pioneer in cloud storage and cross-platform file syncing. Utilizing inorganic and organic means, the firm has been working on diversifying its product mix and pivoting away from the cloud-storage space.
Executives
Timothy Regan officer: Chief Accounting Officer 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Andrew Houston director, 10 percent owner, officer: Chief Executive Officer 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Lisa M Campbell director C/O DOLBY LABORATORIES INC., 1275 MARKET STREET, SAN FRANCISCO CA 94103
Bart Volkmer officer: General Counsel 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Karen Peacock director C/O DROPBOX, INC., 1800 OWENS STREET, SUITE 200, SAN FRANCISCO CA 94158
Timothy H. Young officer: Sr Vice President and GM, Core C/O DROPBOX, INC., 1800 OWENS STREET, SUITE 200, SAN FRANCISCO CA 94158
Abhay Parasnis director 345 PARK AVENUE, SAN JOSE CA 95110
Sara Mathew director CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103
Mylod Robert J Jr director
Michael Seibel director C/O DROPBOX, INC., 1800 OWENS STREET, SAN FRANCISCO CA 94158
Ajay Vashee officer: Chief Financial Officer 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Donald W Blair director ONE RIVERFRONT PLAZA, CORNING NY 14831
Arash Ferdowsi director, 10 percent owner, officer: Co-Founder 111 PINE STREET, SAN FRANCISCO CA 94111
Olivia Nottebohm officer: Chief Operating Officer C/O DROPBOX. INC., 1800 OWENS STREET, SAN FRANCISCO CA 94158
Quentin Clark officer: See Remarks 333 BRANNAN STREET, SAN FRANCISCO CA 94107